Polkadot price analysis: DOT falls below $7.00 as the selling continues

TL;DR Breakdown

• Polkadot price analysis suggests a downwards movement to $6.50
• DOT faces resistance at the $6.86 mark
• The closest support level lies at $6.70

The Polkadot price analysis shows that DOT has failed to break past $7.20 and the following rejection has caused the price to drop below $7.00. Currently, DOT finds support at the $6.70 mark but the selling pressure is only increasing.  

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 ETH and BTC recording a 2.20 and a 1.61 percent decline, respectively.

Polkadot price analysis: DOT rejected at $7.230

The MACD is currently bullish as expressed in the green color of the histogram. However, the indicator shows low bullish momentum in recent hours as observed in the short height of the histogram which suggests weak buying momentum. Furthermore, the lighter shade of the histogram suggests an increasing selling pressure as the price falls towards the $6.50 mark

The EMAs are currently trading close to 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 convergence with the 12-EMA moving downwards to reflect the recent price movements.

The RSI was trading at a high position yesterday as the bulls attempted to break past $7.20. However, at press time, the index trades close to the mean position at 50.00 and hovers at 43.66 moving downwards to show strong selling pressure. The current position leaves low room for further upwards movement across the short term while the gradient shows bearish dominance.

The Bollinger Bands were wide until a few days ago but now show consolidation as the price volatility dwindles around the $7.00 mark. The bands have been slowly diverging since yesterday as price volatility rose with DOT making an attempt at $7.20 but now the bands suggest convergence as the price falls back. Currently, the indicator’s bottom limit provides support at the $6.58 mark while the mean line and the upper limit present resistances at the $6.86 and the $7.13 mark respectively.

Technical analyses for DOT/USDT 

Overall, the 4-hour Polkadot price analysis issues a sell signal with 17 of the 26 major technical indicators supporting the bears. On the other hand, only one of the indicators supports the bears showing a low 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 share this sentiment and issues a sell signal with 14 indicators suggesting a downwards movement against two indicators suggesting an upwards movement. The analysis shows the bearish dominance across the mid-term charts while showing weak buying pressure for the asset across the mid-term charts. Meanwhile, eight 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 after rejection at the $7.20 mark, the bulls were crushed by the bears and the price fell below the $7.00 mark Currently, the price finds support at the $6.70 mark as the bulls hold the price above the $6.50 level. However, the bearish pressure on the price action has been increasing in recent hours suggesting further downwards movement.

Traders can expect DOT to move downwards to the $6.50 mark as the selling continues across the Polkadot markets. Furthermore, the evaporating bullish pressure leaves room for strong bearish movement across the mid-term charts. 

This suggestion is reinforced by the mid-term technical analyses which show a bearish dominance over both the 4-hour and the 24-hour charts. As such, the price can be expected to move between $6.50 to $6.75 with a potential downwards movement to the $6.20 mark.