Polkadot price analysis shows that the trend is still bearish as the price experiences a downfall to $7.55. Polkadot was previously trading at around $7.74 but has now sought support at around $7.49. The main resistance level for DOT/USD is still at $7.74, however, if the price falls below $7.49, it may find support at $7.32. and if it falls below that, it may find support at $7.05.
Polkadot may experience some selling pressure around these levels but if it can hold above $7.49, it may start to see some buying interest come in. The digital asset has a market capitalization of $6.94 billion and is currently the sixth-largest cryptocurrency by market value. DOT/USD is down by 0.77% on the day and is trading at $7.55 at press time. The daily trading volume for DOT/USD has been relatively low at around $258 million.
DOT/USD 1-day price chart: Bears mount pressure as sell-off gathers pace
The daily price chart for Polkadot price analysis confirms a strong bearish trend for the market today as the price covered a downward movement in the past 24 hours. The current market conditions for DOT/USD seem to be bearish in the short term but a breakout from the current consolidation range could see the market make a move towards the $8.00 level in the near future.
The MACD indicator is currently in the bearish zone as the signal line moves above the candlesticks. The RSI indicator for DOT/USD is currently at 47.75 and is heading towards oversold levels which could see bulls make a comeback soon. The upper Bollinger Band is currently at $8.19 and the lower Bollinger Band is at $7.51 which shows that the market is in a state of consolidation at the moment.
DOT/USD 4-hour price chart: Price action is expected to remain bearish
The 4-hour price chart for Polkadot price analysis shows that the market has been in a bearish trend for the last 4-hour. The market had attempted to make a move towards $8.00 but was quickly rejected around the $7.85 level. The market is currently in a state of consolidation and a breakout from the current range could see the market make a move towards either $8.00 or $7.32 in the near future.
The market is expected to remain bearish in the short term as the MACD indicator is moving below the signal line which is a bearish sign. The Relative Strength Index indicator is moving towards oversold levels which could see the market make a move towards $7.35 in the near future. The Bollinger Bands for DOT/USD are currently very close to each other which indicates that the market is in a state of consolidation.
Polkadot price analysis conclusion
Polkadot price analysis confirms that the price has undergone a severe decline during the day. The DOT/USD price is now touching the $7.49 mark, which is the lowest and it can be expected that it will move down to further lows in the approaching hours. However, the price has reached the support zone, and there are chances that the price may bounce back from here if buyers’ support comes into play.
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Source: https://www.cryptopolitan.com/polkadot-price-analysis-2022-08-26/