Polkadot price analysis: DOT will need to maintain $8 support to keep bullish momentum

Polkadot price analysis
TL;DR Breakdown
  • Polkadot price dropped 4 percent on daily chart after rising up to $8.84
  • $8 support remains crucial for DOT with expected seller pressure
  • Further downtrend could hit price down to the $6 mark

Polkadot price analysis remains largely bullish following from an extended uptrend that took price as high as $8.84 yesterday. However, DOT has lost over 4 percent in price since then over the past 24 hours. Price has been in an extended ascending triangle pattern since July 26, 2022, when DOT sat at a lowly price of $6.55. Since then, Polkadot has enjoyed a bullish market with price breaching the $8.5 resistance and trading above the $8.60 bullish crossover. Support at $8 remains crucial for DOT price amid impending seller pressure, and any movement below this point could initiate a heavier downtrend to drag price down to $6.15.

The larger cryptocurrency market dropped off slightly over the past 24 hours, following from an extended period of upward consolidation. Bitcoin dropped 3 percent to $23,700, while Ethereum dipped down to the $1,700 mark. Among leading Altcoins, Cardano receded down to $0.52, while Ripple moved up by 3 percent to reach $0.38. Dogecoin dropped 3 percent to move down to $0.07, whereas Solana picked up a minor uptrend to move up to $44.22.

Screenshot 2022 07 31 at 6.25.32 PM
Polkadot price analysis: Cryptocurrency heat map. Source: Coin360

Polkadot price analysis: DOT remains clear of crucial moving averages on daily chart

On the 24-hour candlestick chart for Polkadot price analysis, price can be seen extending along an uptrend that led price up to the $8.84 mark yesterday. Since then, price has faced some volatility in the market due to which price has trended downwards over the early trading sessions today. However, DOT price remains above the 9 and 21-day moving averages and the 50-day exponential moving average (EMA) at $7.80. There is potential for price to hit resistance levels at $9.20 and then $12.5 if price remains clear of these moving averages.

DOTUSDT 2022 07 31 18 28 18
Polkadot price analysis: 24-hour chart. Source: Trading View

The 24-hour relative strength index (RSI) has risen into the overbought zone at 61.72 over the past 24 hours, which can affect price over the coming trading sessions. Trading volume fell over 17 percent today, suggesting lowering market valuation as well. The moving average convergence divergence (MACD) can be conversely seen forming higher lows and keeping the bullish divergence intact. Over the next 24 hours, DOT price will need to keep the $8 support intact. A move below this point would invalidate the bullish thesis, instigating a downtrend towards next support at $4.5

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.

Razi Khan

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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