- Polkadot price analysis shows price down 6 percent over 24 hours
- Price reached the lowest point this month at $16.58
- Bearish case could be invalidated with move up to $18.75
Polkadot price analysis continues to show bearish signs that only intensified over the past 24 hours. DOT lost 6 percent during the day’s trade to move to the lowest point in the month at $16.58. Trading volume fell 4 percent while DOT market cap dropped over 4 percent today. The bearish trend initiated on April 21, 2022 when price faced rejection at the triangle trend line around $19.61 and has since then dropped over 15 percent. If price continues to move south, as technical indicators suggest, DOT could be in line for a move to a 3-month low at $14.50.
The larger cryptocurrency market matched Polkadot’s intensified bearish outlook, led by Bitcoin’s crash down to $38,000 with a 5 percent dip. Ethereum moved down to $2,800 with a 6 percent decline, while major Altcoins also stayed in the red zone. Ripple fell 6 percent down to $0.65, similar to Cardano’s decline down to $0.84. Dogecoin suffered a massive hit of over 9 percent to move down to $0.14, while Terra lost 6 percent in price to move down to $89.13.
Polkadot price analysis: Bearish engulfing pattern appears on daily chart
On the 24-hour candlestick chart for Polkadot price analysis, price can be seen forming a steep descent over consecutive bearish trading sessions. A bearish engulfing pattern has emerged that is similar to the 15 percent decline that occurred on earlier in the month. The current trend has also moved well below the crucial 50-day exponential moving average (EMA) at $18.17. Furthermore, the 24-hour Relative Strength Index (RSI) shows bearish highs as it heads into the oversold zone at 38.00.
The Moving Average Convergence Divergence (MACD) curve is forming yet another bearish divergence after matching the neutral zone over the past 48 hours. Conversely, a bullish outlook would see a daily close up to $18.75. In this scenario, DOT would move up to $22 before profit taking action takes over the market after a 30 percent increase from current price.
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