Will Polkadot Break Below $3?

DOT is making a lower-low structure and shows bearish momentum. However, technical analysis shows that it is in a bearish trend. Dot price showing a long bullish trend gave a negative return of -41.14% in a year and -15.24% in the last three months.

Since the beginning of the year, it has given positive returns of 3.25%. Moreover, the return gets reduced later on. It gave a negative return of -31.96% in the span of 6 months. In the last 1 month, it gave a negative return of 14.09% and a nominal positive return of 0.45% in the last seven days. Indicating a long Bearish trend.

Polkadot (USD: DOT) price drop n the few past months. At the time of writing, DOT crypto is trading at $4.99 and has been trying to pull back from the current level.

Technical Analysis of Polkadot Crypto

DOT Crypto Price Prediction: Will Polkadot Break Below $3? — Source: Polkadot.1D.USD by Tradingview

If it can keep this level, the Polkadot price could continue to go up and reach the first and second targets of $5.57 and $6.05. However, if the DOT price cannot maintain this level and falls, then it might hit the closest support levels of $3.75 and $4.08.

However, sustained selling pressure could produce new lows. Hence, the DOT price is expected to move downwards giving bearish views over the daily time frame chart. At the time of publishing, Polkadot crypto (USD: DOT) is trading below the 50, 100, and 200-day simple moving averages, indicating a downtrend.

The current value of RSI is 32.86 points. The 14 SMA is above the median line at 32.78 points which indicates that the Polkadot crypto is bearish. The MACD line at -0.18 and the signal line at -0.16 are below the zero line. A bearish crossover is observed in the MACD indicator which signals more bearishness for the DOT crypto price.

Summary

Polkadot Price action suggests that the investors and traders are bearish on the 1-D time frame. The price action reflects a bearish outlook. Polkadot (USD: DOT) technical indicator also reinforces the downtrend. The MACD, RSI, and EMA are giving unfavorable signals and indicate that the negative may continue in the DOT crypto price.

Technical Levels

Support Levels: Nearest support levels for the Polkadot crypto price are $5.57 and $6.05.
Resistance Levels: Nearest resistance levels for the DOT crypto price are R2 $5.57 and R2 $6.04

Disclaimer

The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in crypto involves risk. Please assess your situation and risk tolerance before making any investment decisions.