- Polkadot price analysis shows a bearish market trend
- DOT prices have dipped to the $15 level, down by 2.54 percent
- Support for Polkadot is seen at the $14.06 level
Polkadot price analysis today shows a negative market sentiment whereby DOT prices have been forced down to lows of $15. This follows a significant price spike that saw DOT prices surge to highs of nearly $17. The cryptocurrency is currently changing hands at the $15.06 level, down by 2.54 percent in the last 24 hours.
The overall market trend seems to be bearish as most cryptocurrencies are bleeding value. Litecoin, Bitcoin Cash, and Ethereum Classic are among the top performers in the market today as they register slight gains. Polkadots trading volume has also shrunk to $646 million, which is a key indicator of increased selling pressure. The market capitalization for the cryptocurrency currently stands at $13.7 billion as the coin ranks at position 14 presently.
Polkadot price action on a 1-day price chart: DOT price finds support at the $14.06 handle
On the 1-day DOT/USD chart, we witness a bearish trend develop following yesterday’s price jump. The market seems to have found support at around the $15 handle as prices started bouncing back upwards. The Relative Strength Index (RSI) for Polkadot currently stands at 34 percent, which is an indication of the presence of oversold conditions in the market. The moving average convergence divergence (MACD) indicator is also bearish as the signal line (blue) crosses below the histogram.
Looking ahead, we expect Polkadot prices to remain volatile in the short term as traders react to breaking news and technical developments. However, the key support level appears to be at $14.06, which could provide a possible entry point for new buyers looking to buy on dips or for swing traders looking to open long positions. On the upside, hindering gains could be the $16.50 level in case of a sudden bull-run breakout.
Polkadot price action on a 4-hour price chart: Bears force prices to break below the ascending trendline
On the 4-hour DOT/USD chart, we can see how prices have surged upwards and found resistance at around the $16.60 level before bears forced a retracement. The Fibonacci Retracement tool shows that prices have dipped to near the 0.5 percent retracement level before finding support at the $15.06 level. The RSI for Polkadot stands at around 40 percent, which is an indication of sideways trading conditions in the market. The MACD indicator is bearish as the signal line (blue) crosses below the histogram.
Polkadots market volatility is expected to remain high in the short term as investors look for direction. The Bollinger bands are also relatively wide, which is an indication of high market volatility. On the downside, key support levels appear to be at $14.06 and $13.60. On the downside, a break below the $15 level could see prices dip to around the $14.06 support area. A bounce back from this level could see prices retest the $16 resistance area once again. On the upside, bulls will be targeting a break above the $16.60 level in order to confirm the uptrend.
Polkadot price analysis conclusion
Based on our Polkadot price analysis, we believe that there are chances for prices to dip even further before bouncing back up. However, sustained trading volumes and bullish market sentiment could see DOT price soar toward the $17 level once again. Key support levels appear to be at $14.06 and $13.60, while the resistance level is at $16.60 for now. The overall market trend appears to be bearish as well, which could force DOT prices lower in the short term.”
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