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Polkadot price analysis: DOT moves downward after reaching $6.5 high

Polkadot price analysis

TL;DR Breakdown

. Polkadot price dropped down to $6.095 today
. Daily chart shows high volatility
. Next major resistance point faced at $7.150

Polkadot price analysis shows mixed signs over the current price trend, as price declined more than around 2 percent over the past 24 hours. The trend reversed after DOT moved up to $6.5 yesterday, the highest point in over 30 days. Daily candlesticks show high volatility in the market for Polkadot, with sellers dominating trade over the past 24 hours. Earlier, price had enjoyed a strong run to rise from $4.3 to $6.5 since the start of January, recording a 51 percent increase. At the time of writing, DOT price has settled around $6.20.

The larger cryptocurrency market shows minor downtrends across the board over the past 24 hours, as Bitcoin declined to $22,600 with a 2 percent downtrend, and Ethereum dropped to $1,600 with a 1.5 percent dip. Among leading Altcoins, Ripple declined 2 percent to move down to $0.4, whereas Cardano and Dogecoin recorded minor uptrends to reach as high as $0.37 and $0.08, respectively.

Screenshot 2023 01 22 at 11.07.14 PM
Polkadot price analysis: Cryptocurrency heat map. Source: Coin360

Polkadot price analysis: Daily RSI expected to dip further as price drops

On the 24-hour candlestick chart for Polkadot price analysis, price can be seen reversing a long-standing uptrend over the past 24 hours. After increasing up to $6.50 after breaking resistance points at $5.81 and $6.35, DOT has moved down to $6.06, with further drop expected. Price remains above the 9 and 21-day moving averages, along with the crucial 50-day exponential moving average (EMA) at $5.931 for now.

DOTUSDT 2023 01 22 23 11 58
Polkadot price analysis: 24-hour chart. Source: Trading View

The 24-hour relative strength index (RSI) can be seen extending deep into the overbought zone above the 80 mark, before slipping down to the current state at 70. However, as price continues to drop, the RSI is expected to move further downward to provide price correction. Meanwhile, the moving average convergence divergence (MACD) curve continues to show bullish potential in DOT, with the signal line seen well above the trend line.

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.

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 decision.

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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