- Polkadot price analysis is bearish today.
- A retest at $30.14 will act as an important support level for the short term.
- The price movement is verified by a 24-hour Star pattern.
The price of Polkadot has dropped significantly in the last 24 hours after it failed to pass testing at $38.30. Price fell from $37.18 yesterday and has continued to drop through today’s trading session, closing at $32.04. The current retreat may take DOT prices down as low as $30.14, but prices may likely rebound later on this week.
A retest at $30.14 will act as an essential support level for the short term, with any break below this level continuing DOT’s recent drop further to around $26.88 before any significant bounce-back can be seen. A significant price rise appears unlikely, but it is probable that the price may drop further in the short term before any recovery.
DOT/USD 24-hour chart: Evening Star pattern shows change in trend
The price movement is verified by a 24-hour Star pattern, suggesting that Polkadot’s retest will be faced. Price began to fall from $36.84 on October 10 and dropped as low as $32.00 in the current trading session, bringing it below the 20-day Exponential Moving Average. The Relative Strength Index (RSI) is also printing at levels oversold on the 4-Hour chart.
This price drop indicates that new descending highs may be made, with current resistance around $36.93 likely to prevent any significant gains. Throughout October 11, the price dropped below this level and continued downward until it fell through support at $34.00 and broke through the 78.6% Fibonacci retracement level at $31.11 before returning upwards.
The cryptocurrency price is expected to test support around $30.14, with a retreat after this level has been tested likely. The 16-day Exponential Moving Average may indicate a recovery if it crosses above and beyond the 9-day EMA. A decline below $30.14 is feasible, but given that DOT appears to have hit oversold on the RSI on the 4-hour chart, it is likely that prices will fall to around $25.20 before any notable recovery can be seen.
DOT/USD 4-hour chart: RSI drops to 50 with further decline in sight
On the 4-hour chart, the does not show any further bearish momentum signs price can be seen upping slightly, but with a decreasing RSI value of 50.86. Price sits just above the 20-day EMA and between the middle and bottom Bollinger Bands’ curves. It suggests that price movement could go either way over the next few trading sessions. However, a declining trading volume all but confirms seller domination in the market for DOT, putting it in prime for a further decline.
The Stochastic RSI oscillator is printing in oversold territory on the 4Hour chart, suggesting that the drop may continue rather than bounce back significantly. However, the stochastic RSI remains within its range and does not show any further bearish momentum signs.
Polkadot price analysis: Conclusion
Depending on the movement of price within 24 hours, a possible uptrend may form if the price manages to surpass the downtrend resistance around $36.93. Aggressive buy orders placed around $39.14 may see a quick rise in price, but this will only be a temporary gain before prices dropped back down through crucial support levels at $30.14 and around $26.88 for extended gains yesterday.
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