- Polkadot price analysis suggests a downwards movement to $6.70
- DOT finds resistance at the $7.40 mark
- The closest support level lies at $7.00
The Polkadot price analysis shows that DOT has been rejected at the $7.50 mark which has caused the asset to crash back to the $7.00 support level. Currently, the selling seems to be in full swing as bears dominate the markets.
The broader cryptocurrency market observed a bearish market sentiment over the last 24 hours as most major cryptocurrencies record negative price movements. Major players include AVAX and ICP, recording a 5.79 and a 5.41 percent decline, respectively.
Polkadot price analysis: DOT finds resistance at $7.500
The MACD is currently bearish, as expressed in the red color of the histogram. However, the indicator shows low bearish momentum as it has just exhibited a crossover due to the strong bearish activity taking place in recent hours. Regardless, the darker shade of the histogram suggests a rapidly increasing selling pressure for the Polkadot price.
The EMAs are currently trading around the mean position as net price movement over the last seven days remains low. However, as the markets observe selling activity, the EMAs show signs of a bearish divergence, with the 12-EMA taking the lead in moving downwards to reflect the recent price movements.
The RSI has been trading in the neutral region since 18 July as net pie movements remained low across the short-term charts. However, the index dropped to the 39.40 level today as DOT faced resistance at the $7.50 mark and crashed below. At press time, the indicator moves downwards suggesting bearish pressure at the price level while the neutral position leaves room for further movement.
The Bollinger Bands have been wide for the last couple of days as the price volatility continued to increase. Today, the bands continue to diverge as the price breaks down below the lower limit of the indicator. Currently, the indicator’s bottom limit provides support at the $7.07 mark while the mean line acts as a resistance level at the $7.40 price level.
Technical analyses for DOT/USDT
Overall, the 4-hour Polkadot price analysis issues a strong sell signal, with 18 of the 26 major technical indicators supporting the bears. On the other hand, none of the indicators support the bears showing little to no bullish presence in recent hours. At the same time, eight indicators sit on the fence and support neither side of the market.
The 24-hour Polkadot price analysis shares this sentiment and also issues a strong sell signal with 16 indicators suggesting a downwards movement against one indicator suggesting an upwards movement. The analysis shows the bearish dominance across the mid-term charts while showing very low buying pressure for the asset across the same timeframe. Meanwhile, nine indicators remain neutral and do not issue any signals at press time.
What to expect from Polkadot price analysis?
The Polkadot price analysis shows that Polkadot’s bearish rally started with the rejection at the $8.00 mark which caused the price to fall back to the $7.25 mark. While the bulls attempted to recover the price level, the increasing bearish pressure made it difficult to do so. Currently, the price has fallen to $7.00 and is expected to move downwards.
Traders should expect DOT to fall below the $7.00 mark in the next two days as DOT finds support at the $6.70 price level. The suggestion is supported by the mid-term technical analyses, both of which are highly bearish at press time.