The primary catalyst supporting DOT price action stems from the recent inclusion of Polkadot in the diversified crypto index ETF (DIGI) that launched in Q1 2025. This development simplifies institutional access to DOT alongside ADA, SUI, and LINK through traditional brokerage accounts, potentially expanding the investor base beyond direct crypto exchanges. As of December 29, Polkadot bears gained the upper hand with DOT price declining 2% to $1.83, struggling against the $1.90 resistance level. The asset has experienced significant pressure over the past year, down 74% from levels above $10 in January 2025.
DOT price currently sits at $2.14, notably above key short-term moving averages including the 7-day SMA at $1.98 and the 20-day SMA at $1.86. However, the current price remains significantly below the 200-day SMA at $3.30, indicating the longer-term downtrend remains intact. The 24-hour trading range between $2.12 and $2.18 suggests consolidation around current levels. The RSI reading of 58.74 places DOT in neutral territory, suggesting neither oversold nor overbought conditions.
The MACD histogram shows a bullish reading of 0.0660, indicating potential momentum building despite the negative MACD line at -0.0144. Most notably, DOT’s position at 101.16% of its Bollinger Band range places it right at the upper band resistance of $2.14, creating a critical decision point. The Stochastic indicators (%K at 86.24, %D at 89.57) suggest overbought conditions in the near term. Immediate resistance sits near $2.22, while support stands at $1.86 (20-day SMA and middle Bollinger Band).
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