- Polkadot price analysis for today is bearish.
- Currently, the price is struggling at $25, a support level.
- If support fails to hold, another support is present at $23.
Polkadot has been one of the best performing altcoins in the past few weeks as Bitcoin jumped from $29k to $50k. DOT’s exceptional performance is matched by other currencies like Solana, Cardano, and Luna. For today, DOT price analysis predicts a bearish movement as it retraces some of the gains in the past weeks. Polkadot’s price moved from $27 to $25 overnight as the support wasn’t rejected and the price movement is above it.
For now, it is seen that the support is still holding but the price of Bitcoin has dropped below the support at $48k and if Bitcoin fails to claim it, a further downside can be expected from DOT. For now, it can be seen that the support holds but in case it fails, the next support is at $23 while resistance currently rests at the $28 price level.
It can be seen that DOT has seen a bearish trend since yesterday as the price movement was unable to pull through the $28 price level. Along with DOT, other cryptocurrencies have also seen a bearish trend, including RUNE losing 10 percent and Solana losing 8 percent. Also, the bulls lacked the momentum to push through the the resistance for Bitcoin $50.5k.
Technical indicators bearish on 4-hour chart: Polkadot price analysis suggests further retracement
Based on the movement of Bitcoin, a price movement for Polkadot can also be mapped out. The price of Bitcoin has continued to drop down below support levels at $48k and we might expect BTC to retest support at $44k. If BTC fails to reclaim support $48k, we might see Polkadot lose current support at $25 and drop down to test support at $23.
In the 4-hour chart below, we can see that the current price movement is continuing towards the lower end of the Bollinger Bands which confirms our bearish Polkadot price analysis. If the support breaks, we can see the DOT price break out of the lower end of the Bollinger Bands. We can also look at the 50-day and 100-day Moving Averages on the 4-hour chart.
The price of Polkadot is currently above the 100-day Moving Average on the 4- hour chart but below the 50-day Moving Average indicating bearish outcomes. The day started with a red engulfing candle as the price fell to $24.4 but quickly went up in the next candle. This seems to be a crucial moment according to our Polkadot price analysis.
Looking at other indicators, the RSI level is currently at 44 and moving towards the neutral point at 50. The gradient is turning positive and this indicates that the support provided by DOT at $25 will hold unless Bitcoin retests $44k. Considering the current movement, it could be that the price moves down to test the support at $23 but in case the support holds, we might see further upside. Hence, according to RSI indicators, one should wait for the support to break or hold to enter a trade.
Furthermore, considering the MACD indicator, the histogram is filled with red bars since the bearish divergence on 21st August. The signal line (orange line) is below the MACD line (blue line) indicating a bearish price movement according to our Polkadot price analysis.
What to expect from the Polkadot price analysis?
Polkadot announced the Polkadot Web 3.0 Talks on Twitter on 31st August, wherein discussion will be held on DAOs. Considering the popularity of Polkadot, we can definitely say that Polkadot is one of the best performing altcoins and a good buy for investors to hold long-term. When it comes to the long-term, you can visit the Polkadot Price Prediction to look at the expected performance of DOT in the coming years.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.