- DOT token moved past $31 to set sights on $33.4 resistance on intra-day trade
- Price crossed 20-day EMA before signs of a retest started to appear
- Trading volume up by 6 percent with price declining
Polkadot price analysis shows another day of increments for the token. However, technical signs suggest that the positive run that propelled DOT from $26.30 at the start of the month up to a high of $33.3 might be over. After a positive start to the day, pushing price past $33, the token can be seen dropping swiftly on the intra-day trade. Price at the time of writing is $31.47, down almost 3 percent from yesterday. Trading volume has risen more than 6 percent in the same time period, suggesting there is majority selling action taking place in the market.
The larger cryptocurrency market, especially Altcoins, showed declines similar to Polkadot. Ethereum went down almost 2 percent to sit just above $3,400. Cardano decreased 3 percent at $2.20, with Ripple also declining. The biggest winner on the day’s trade was Dogecoin, rising 4 percent to go up to $0.22.
DOT/USD 24-hour chart: Sellers come into the market after a period of consolidation
After a period of slight consolidation above the $31 mark, DOT now faces an incoming retestment which can be seen on the 24-hour chart. Price has slipped around as low as $30.07, with the Relative Strength Index (RSI) showing a mid-range value of 52.41. It suggests that traders are initiating a selling trend which could take price back below $30. The Moving Average Convergence Divergence (MACD) line can also be seen moving just below zero, below the neutral zone, to confirm the bearish state of the market. Over the next 24 hours, price is expected to lower down to $30.45, spelling an abrupt end to the positive start to the month by Polkadot.
DOT/USD 4-hour chart: Evening Star pattern appears to set reversal in motion
On the 4-hour chart for Polkadot price analysis, an Evening Star pattern can be seen forming to confirm a reversal in trend. Price is seen moving further away from the resistance at $33.4. The RSI has lowered down to 48, indicating the token is losing valuation in the market. Moreover, the MACD line can be seen moving below the neutral line, just above zero. According to technical trends over the 4-hour chart, DOT is set to lose value further, making the next few trading sessions crucial.
Polkadot price analysis: Conclusion
In conclusion, DOT is set to undergo a change in trend, moving price back towards the pivot at $28. Any decline further than this point, towards support at $26 would hit the token hard, after having consolidated just below the resistance of $33. The declining RSI values, coupled with incremental trading volume are strong indicators of traders initiating selling action for the token. Over the next few days, the extent of the decline will be seen.
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