The past few trading sessions have seen Polkadot prices stagnate and trade in a sideways market. Despite today’s trading session continuing a bullish trend that started yesterday, there is also a high chance that we will see the sideways market extended.
However, despite the past few days of positive market performances, Polkadot has been in a strong bearish trend throughout the year. In July, it is down by 2 per cent, continuing a trend that resulted in its prices dropping by 31 per cent in June and 28 per cent in May. The year-to-date data also shows Polkadot’s is down by 73 per cent. Such a significant loss is a sign of a possible continuation of the long-term bearish trend throughout the month, and possibly throughout the year.
In today’s trading session, Polkadot is up by almost a percentage point. The bullish move extends yesterday’s one per cent gain and is looking likely to continue throughout the session. However, looking at the daily chart below, we can see Polkadot has traded in a sideways market for the past eight days. The chart also shows that since June 10, prices have traded within support and resistance levels of $6.3 and 7.4 respectively.
Therefore, my Polkadot price prediction expects the prices to continue trading in a sideways market that started eight days ago for the next few trading sessions. In the unlikely event of Polkadot breaking out of the current sideways markets, I expect the prices to move up and hit the $7.4 resistance level.
There is a high likelihood that such a move will also see prices trading above the resistance level, and possibly hitting the $8 psychological level. However, my sideways price analysis will be invalidated if prices move below the $6.3 support level. At that point, it will be a clear move to the downside. It will also signal that the prices may move below the $5 price level.
This post was last modified on Jul 07, 2022, 08:25 BST 08:25