- Polkadot price analysis is bearish today.
- Price has receded down to $43.
- Support for DOT/USD is found at $41.2.
The Polkadot price analysis is bearish today as Dot declined further upside at $45. The price trend line for the DOT/USD pair has been upwards for the past month and the past week, as the cryptocurrency has gained a significant value over this period, and the price has improved tremendously. However, today’s downtrend can prove detrimental if DOT fails to get support at $41.2.
DOT/USD 1-day price chart: Bears drag the price down to $43 as selling pressure builds up
The 1-day chart for Polkadoyt price analysis shows the bears have dragged down the price from $45 to $43.4 today as the coin is trading at the later value at the time of writing. DOT still shows a gain of 1.6 percent in price value over the last 24 hours due to the bullish momentum of the last two days and a gain of 7.7 percent over the course of the last seven days. But the figures might soon change as the RSI has plunged down, and we might soon observe a downfall, and the gains may soon turn into a loss. However, the trading volume has increased by 72 percent over the last 24 hours.
The volatility is comparatively high, with the upper Bollinger band at $48 representing resistance for DOT, and the lower band is at the $33.3 mark representing the lowest support for DOT/USD. The mean average of the volatility indicator is at $40.7, which also represents support for the coin and may soon undergo a test. The price has stooped below the moving average (MA), indicating a bearish crossover.
The relative strength index (RSI) has dipped down to index 60, though still at a higher level; the movement curve shows an alarming situation and intense selling activity in the market, which is the major indication for the price to go further down. The RSI curve may become sharper in the coming hour, and the price may go below the psychological mark of $40.
Polkadot price analysis: Recent developments and further technical indications
The recent 4-hour Polkadot price analysis further authenticates our doubts as red candlesticks continuously appear on the 4-hour chart, indicating downwards price movement. The downfall seemed controlled in the beginning four hours but has gained pace in the last four hours. As can be seen, the last candlestick is comparatively much larger, indicating a steep plunge in DOT price.
The volatility on the 4-hour chart is mild, but the price has also come below the volatility indicator’s mean average line, which is present at the $43.6 mark; this is another bearish crossover that took place in the last four hours after the bearish crossover of the MA. The RSI also provides reasoning for fear of a massive loss in DOT price, as it now shows a steeper downwards movement almost going vertically down, and the RSI has entered the lower half of the neutral zone at index 47.
Due to the great bullish momentum for the entire month, the technical indicators for Polkadot price analysis still favor the buying side with 13 indicators giving buy signals, including the MA and the EMA, and only three technical indicators show sell signals, including the MACD and momentum oscillators. However, 10 technical indicators stand neutral. As the price is falling fast, the EMA10 might soon signal a selloff.
Polkadot price analysis conclusion
The Polkadot price analysis shows the coin is under high selling pressure. The price has moved below the moving average on the 24-hour and 4-hour charts and also below the Bollinger bands average on the 4-hour chart, indicating strong bearish momentum. The RSI is also signaling a selloff. DOT may soon retest the support at $41.2, but if the support falters, the DOT will go below the $40 handle today.
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