Polkadot price analysis: DOT finds resistance at $7.16; will the price depreciate further?

Polkadot price analysis: DOT finds resistance at $7.16; will the price depreciate further?
TL;DR Breakdown
  • Polkadot price analysis shows a bearish trend.
  • Support for DOT is present at $6.81.
  • Resistance is found at $7.73.

The Polkadot price analysis shows a slight decrease in price today. The price breakup was downwards today when the price went from $7.16 to $7.03, but DOT/USD has found support at this level as the price is recovering again, but the selling pressure can take over the market again in the coming hours. The DOT/USD was on a decline from the past week, but the price movement was upwards for the last three days; however, bears have taken over again, and the price has decreased today.

DOT/USD 1-day price chart: Bears to rule the price movement

The 1-day price chart for Polkadot price analysis shows overall, a small deficit in price has happened from the start of today’s trading session as bears have declined a further up move. The DOT/USD pair is trading hands at $7.06 at the time of writing while still reporting a gain of 4.74 percent in value over the last 24 hours as the bulls were in the lead till yesterday. On the other hand, the coin has been at a loss of 8.96 percent for the past week, and the trading volume has increased by 85.46 percent today.

dot 1 day
DOT/USD 1-day price chart. Source: Tradingview

The volatility is comparatively mild, with Bollinger bands moving forward showing a little divergence, with the upper band at the $8.23 mark representing resistance and the lower band at the $6.53 mark representing support. The average of Bollinger bands is forming at the $7.38 mark, above the price level, indicating selling pressure in the market.

The relative strength index (RSI) is hovering at index 40 in the lower half of the neutral zone, while the slope is slightly downwards; RSI shows the selling pressure present in the market.

Polkadot price analysis: Recent developments and further technical indications

The 4-hour Polkadot price analysis shows bearish dominance as the price went down at the start of the trading session and swung low towards the $6.78 level for a moment. Currently, the price is recovering after a downfall and is trading at $7.06 at the moment. However, the bearish pressure may return back, and the price may fall further if bulls show exhaustion, for which there are ample chances.

dot 4 hour
DOTUSD 4-hours price chart. Source: tradingview

The Bollinger bands have taken on to expand on the hourly chart, and the upper band has reached the $7.13 mark, and the lower band is at the $6.55 mark; the mean line of Bollinger bands is below the price level. The RSI is in the upper half of the neutral zone at index 55, indicating the buying momentum that has started just now, but the curve of the indicator is humble and can turn down at any time.

Polkadot price analysis: Conclusion

From the 24 hours and 4-hour Polkadot price analysis, it can be deduced that the market currently is in favor of the bearish side, as most of the important technical indicators either support bears or stand neutral, so we expect a further drop in the price of Polkadot with an unlikely chance of another 50 percent drop in price which if happens will lower the price down to $3 range.

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.
Aamir Sheikh

Aamir Sheikh

Amir is a media, marketing and content professional working in the digital industry. A veteran in content production Amir is now an enthusiastic cryptocurrency proponent, analyst and writer.

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