Polkadot price remained in consolidation mode for the third session in a row ahead of the big tech’s earnings reports in the new week. Besides, the Fed’s interest rate decision remains a key driver of this class of assets.
Similar to most other crypcurrencies, including Bitcoin, are in consolidation mode ahead earnings reports from major tech companies. As has been the case in past months, cryptos tend to move in tandem with US stock market, particularly the tech-heavy Nasdaq index.
Microsoft and Alphabet Inc. are some of the big tech firms set to release their earnings reports on Tuesday. Meta Platforms and Amazon will release their quarterly figures on Wednesday and Thursday respectively. As at the time of writing, Nasdaq Composite was down by 0.29% while S&P 500 was up by 0.09%.
At the same time, May’s Fed interest rate decision is on investors’ mind. Tempering expectations that the central bank will halt its rate hikes may continue to weigh on cryptocurrencies.
Polkadot price forecast
DOT/USD began the new week on its back foot even though it has been in a consolidation mode since the past weekend. After hitting a two-month high last week, the altcoin has erased the gains recorded over a span of one month. Indeed, the gains made between 27th March and 18th April were reversed over the course of the just concluded week.
As at the time of writing, polkadot price was up by 0.02% at $5.913. With the recent losses, the crypto is now trading below the 25 and 50-day exponential moving averages. The two technical indicators have converged at 6.267. Based on both the fundamentals and technicals, I am rather neutral on the altcoin with a bearish inclination.
In the immediate term, I expect the cryptocurrency to remain in consolidation mode as the technicals set the pace. The formation of a death cross, which will occur if the 25-day EMA crosses the 50-day EMA to the downside, will likely push polkadot price to a fresh six-week low at 5.70. Below that level, the bears will be looking to retest the lower support zone of 5.42.
On the flip side, a golden cross will confirm 5.84 as a steady support zone in the short term. In that case, the bulls will have an opportunity to break the resistance at 6.12. Even so, the upper level of 6.45 will likely remain a steady resistance level in the short term.