Today’s Polkadot price analysis reveals that prices are on a prevailing downtrend that has been seen since yesterday’s market rally. The 8.78 percent drop in prices has decreased DOT to $6.97 from the intraday high of $7.66.The downtrend will likely continue in the near term as DOT prices are trading close to the lower boundary of the descending channel.
The support for DOT prices is present at $6.79 and a breakdown below this level could see DOT enter into a freefall towards the $5 region, while a move above $7.66 is required for bulls to take control of the market. The Market cap for Polkadot stands at $7.78 billion, and the 24-hour trading volume is recorded at $446 million.
DOT/USD 1-day price chart: Price goes down to $6.97
The 24-hour Polkadot price analysis predicts a downward trend for the market as the selling momentum remained high during the day. The bears have successfully tackled the unfavorable circumstances as no considerable bullish efforts have been seen. The price is now at $6.97, and further devaluation is to follow if the selling activity experiences a further rise.
The technical indicators signal a continuation of the bearish trend as the RSI indicator is under the 50 level and heading towards oversold conditions. The sell-off from the highs has taken DOT prices below the key support level at $679 and also below the 20-day moving average (MA) at $7.01.The 20-day moving average (MA) and the 50-day MA are trending southward, which is a sign that the bears are in control of the market. The Bollinger bands have also widened, which is an indication of high volatility in the market.
Polkadot price action on a 4-hour price chart: Bearish trend line intact
The 4-hour DOT/USD chart shows a descending channel as the price is trading inside the descending channel. The downtrend will continue if the price breaks below $6.79, and this can result in a decline towards the $5 region. The descending channel is a bearish pattern and has been formed as the price action has made lower highs and lower lows over the last few hours. The DOT/USD pair is currently trading close to the lower boundary of the descending channel, which is likely to act as a strong resistance.
The upper Bollinger band is at $7.66, which is act as stiff resistance for DOT prices. The lower boundary of the Bollinger band is at $6.79, which is likely to act as strong support for DOT prices in the near term. The Relative Strength Index (RSI) indicator is at 46.21 and is currently below the 50 level, which is a sign that the market is in bearish territory. The 20 MA is at $7.01, and the 50 MA is at $7.21, which is a sign that the market is in bearish territory.
Polkadot price analysis conclusion
Polkadot price analysis shows a bearish market sentiment formed during today’s opening of the market as bears continue to dominate the market. The technical indicators are also indicating a bearish market and further price decline is expected in the near term. Bulls might make an attempt to take control of the market if they manage to push prices above $7.66.
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Source: https://www.cryptopolitan.com/polkadot-price-analysis-2022-09-07/