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Polkadot price analysis: DOT price suffers further downtrend at $11.57

Polkadot price analysis
TL;DR Breakdown
  • Polkadot price analysis reveals a drop towards $11.57
  • DOT prices have been on a downtrend for the past week
  • Support for DOT prices is present at $10.45

Polkadot price analysis reveals a prevailing decline of DOT prices over the last few days, with prices bleeding to $11.57. The prices are down by a whopping 11.13 percent, registering the weekly low at $11.09 on May 10, 2022. The market capitalization of DOT has fallen to $11.2 billion, and the 24-hour trading volume is recorded at $1.9 billion. The prices have been following a descending channel since the beginning of this month and are currently testing the lower boundary of the channel.

The immediate support for DOT prices lies at $10.45, and if this level is breached prices may drop to $8.48. Polkadot prices are expected to face further selling pressure if the $10.45 support is breached as the market looks oversold in the 4-hour timeframe. The declining market for DOT/USD may be attributed to the declining market whereby most of the digital assets are trading in the red. Bitcoin and Ethereum, the two largest digital assets by market capitalization, have been struggling to find support and are currently down by 6.73 percent and 3.89 percent respectively in the last 24-hours.

image 133
Cryptocurrencies prices heatmap, source: Coin360

Polkadot price analysis on a daily chart: Bears in control as prices struggle near $11.57

Polkadot price analysis on a daily timeframe reveals the prices are struggling to maintain the $11.57 level, which is the weekly low. The prices have been on a downtrend for the past week and are currently trading below the 50-day simple moving average (SMA), which indicates that bearish momentum is prevailing in the market. The relative strength index (RSI) is currently at 34.32, which indicates that the market is oversold. The MACD shows that the prices are in a bearish zone as the signal line is above the histogram.

image 131
DOT/USD 1-day price chart, source: TradingView

The descending channel pattern projects a target of $8.48 if the prices breach the $10.45 support level. The downtrend may be extended if the $8.48 support level is breached. On the upside, the prices may face resistance at $12.75 and $13.48.The market volatility for DOT/USD pair is extremely high as indicated by the ATR of 5.33. The upper band of the Bollinger band is residing at the $20 level, which is a very strong resistance while the lower band is at $8.48, which is very strong support. The Bollinger bands seem to be very wide due to the high selling action experienced in the market.

The 4-hour timeframe for DOT/USD pair: RSI oversold, MACD is in bearish territory

The 4-hour timeframe for DOT/USD pair reveals that the prices have been on a downtrend since the beginning of this month. The prices are currently trading below the 50-day SMA and are expected to face further selling pressure if the $10.45 support is breached. The MACD line is currently crossing the red signal line from above, which indicates that bearish momentum is prevailing in the market. The RSI is currently at 34.32 and is oversold, which indicates that the prices may face some buying action in the near term.

image 132
DOT/USD 4-hour price chart, source: TradingView

The immediate support for DOT prices lies at $10.45, and if this level is breached prices may drop to $8.48. Polkadot prices are expected to face further selling pressure if the $10.45 support is breached as the market looks oversold in the 4-hour timeframe. The Bollinger bands are expanding, which indicates that the market volatility is extremely high.

Polkadot price analysis conclusion

Today Polkadot price analysis shows the DOT/USD pair has shed up to 11.33 percent of its price as bears seem to be targetting the $8.48 level. The market is extremely volatile as indicated by the ATR, and the prices may witness some buying action at the oversold levels. On the upside, the prices may face resistance at $12.75 and $13.48 levels, while on the downside, the immediate support lies at $10.45, and if this is breached, prices may drop to $8.48.Bulls are seen to be struggling to defend the $11.57 level, which is the weekly low. The market looks oversold in the 4-hour timeframe, and prices may witness some buying pressure at these levels.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

John Palmer

John Palmer

John Paul is an enthusiastic crypto writer with an interest in Bitcoin, Blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience.

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