- Polkadot price analysis shows price continuing bearish trend
- DOT dropped more than 5 percent over past 24 hours to move down to $16.05
- An upheaval up to $20 will invalidate the bearish thesis
Polkadot price analysis continues to show bearish signs. Price dropped more than 5 percent over the past 24 hours to move as low as $16.05, taking it to the lowest point since 25 February 2022. Price poses an unappealing outlook for investors who may be looking for potential short entries as the bearish outlook is expected to continue over the coming days. The bearish target is set around $15 and $14.50 while bulls have yet to put up a countertrend rally. DOT trading volume over the past 24 hours dropped 9 percent while market capitalisation fell more than 5 percent, posting a significantly bearish reading.
The larger cryptocurrency market recorded bloodsheds all across the board as major cryptocurrencies declined significantly. Bitcoin moved down to $38,500 with a 3 percent drop, while Ethereum moved further away from the crucial $3,000 mark, enduring a 3 percent decline. Among major Altcoins, Ripple shed 4 percent to move as low as $0.61 similar to Cardano’s drop down to $0.80. Dogecoin dipped slightly, moving as low as $0.13, while Solana and Terra dropped 4 percent each, moving down to $93.95 and $85.22, respectively.
Polkadot price analysis: DOT drops into oversold zone on daily chart
On the 24-hour candlestick chart for Polkadot price analysis, price can be seen forming a bearish trap that took a significant turn downward over the past 24 hours. Price moved further away from the crucial 50-day exponential moving average (EMA) at $17.41, while the 24-hour Relative Strength Index (RSI) moved further into the oversold zone at 34.81. Furthermore, the moving average convergence divergence (MACD) curve continues to form bearish highs as it intensifies a bearish divergence below the neutral zone.
The only way out of the bearish trap for DOT is a breach of the origin of the parallel channel at $20. However, if the bearish target of $14.50 is met, a pullback is likely to occur as traders come into the market at discounted price. The bulls are then expected to target the $24 mark at a 20 percent increase from current price.
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