Polkadot price analysis shows that the market is in a downtrend following a breakout at $8.24. However, prices are testing the $7.42 support level. A break below this support could see DOT prices fall to $6.80 while resistance at $8.24 could see prices rally to $9.02. The market is expected to remain bearish in the near term.
Polkadot prices have been on a downtrend over the past few days as the market finds it difficult to break above $8.24. The DOT/USD pair fell below this level in the last 24 hours and has since been struggling to reclaim lost ground. Prices are currently trading at $7.47 and are down by over 4% in the past 24 hours. The trading volume for 24 hours is $403,396,237, which is average and shows that the market is indecisive at the moment. The total market capitalization for DOT stands at $7.01 billion.
Polkadot price analysis on a 1-day price chart: SOL/USD market likely to decline further
The daily Polkadot price analysis chart shows that prices have formed a descending triangle pattern which is typically considered to be a bearish pattern. The breakout at $8.24 has confirmed this bearishness and we can expect prices to continue falling towards the next support level at $7.42. A break below this level could see prices decline to $6.80 while resistance at $8.24 could see prices rally to $9.02.Furthermore, the Relative Strength Index (RSI) on the daily chart is currently at 36.48 and is trending downwards. This shows that the market is bearish in the near term and a further decline can be expected.
The MA50 and MA200 on the daily chart for DOT/USD are both trending downwards which is a sign that the market is bearish in the long term. The Moving Average Convergence Divergence (MACD) on the daily chart shows that prices are currently in a bearish trend as the MACD line is above the signal line and is trending downwards.
On the 4-hour DOT/USD price chart: Price action is expected to remain bearish
The 4-hour Polkadot price analysis chart shows that prices are below the moving averages which is a sign that the market is bearish in the near term. The MACD on this time frame is also bearish as the MACD line is moving below the signal line which is a downtrend sign. Prices are currently trading below the $8.24 resistance level and we can expect prices to continue falling towards the next support level at $7.42.
The Relative Strength Index (RSI) on the 4-hour time frame is currently at 37.81 and is trending downwards which shows that the market is bearish in the near term. The buyers will need to push prices above the $8.24 resistance level for the market to turn bullish. The EMA 50 and MA 200 in a 4-hour time frame are both below the price action which is a sign that the market is bearish in the long term.
Polkadot price analysis conclusion
Polkadot price analysis shows that the market is in a downtrend following a breakout at $8.24. However, prices are testing the $7.42 support level and 8.24 resistance. The market is expected to remain bearish in the near term as the indicators on both time frames are bearish.
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Source: https://www.cryptopolitan.com/polkadot-price-analysis-2022-06-22/