Polkadot price analysis: DOT declines below $22 support level to set opportunity for new uptrend

TL;DR Breakdown

• Polkadot price analysis shows price declining more than 8 percent
• Price flipped support barrier at $22.50 to provide opportunity for upturn
• A bearish close below $20 could however complicate matters for DOT

Polkadot price analysis shows bearish trend continuing from April 4, when price initiated a downturn at $23.21. Since then, subsequent declining trading sessions have plummeted DOT price as low as $20.07, recording an 8 percent recession over the past 24 hours. The current downturn however is expected to give rise to a new trend upwards for DOT, which could propel price up to $30.48 with a 33 percent increment. The current trend provides buying opportunity for investors to come into the market, however a daily close below the $20 mark would invalidate the bullish expectation and complicate matters for DOT.

The larger cryptocurrency market plummeted the same as Polkadot, led by Bitcoin’s decline worth 5 percent to take price to $43,000. Ethereum struggled to hit $3,500 and went down 7 percent to sit at $3,200. Among leading Altcoins, Ripple dropped 5 percent, Cardano 8 percent and Dogecoin 7 percent. Further testing declines were recorded with Terra (8 percent) and Solana (11 percent) to cap off a dismal day for the cryptocurrency market.

Polkadot price analysis: Significant dip in market valuation could hamper next bullish run

On the 24-hour candlestick chart for Polkadot price analysis, price can be seen falling significantly below the crucial 25-day exponential moving average (EMA) at $21.86. The $22.50 resistance barrier remains intact, but DOT price could have a serious test in retaining the $20 support, as suggested by the daily chart technical indicators. The relative strength index (RSI) has taken a significant dent after falling down to 45.50 in a matter of 3 days. Moreover, the moving average convergence divergence (MACD) also took a bearish turn over today’s trade and crossed below the neutral zone.

These bearish indicators need to be overcome in order to put forth a challenge for the next expected upturn, where DOT price will need to surpass the $22.50 resistance on the daily chart. However, a close below $20.17 by day end today could invalidate the bullish sentiment and create a lower low below the bullish order.

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