Polkadot price analysis: DOT falls below$6.40, further decline expected

TL;DR Breakdown

• Polkadot price analysis suggests a drop towards the $6.00 mark
• The closest support level lies at $6.35
• DOT faces resistance at the $6.50 mark

The Polkadot price analysis shows that the price has fallen back to the $6.40 mark which provides support to the bulls. However, can DOT hold on to the level as the bearish pressure increases?

The broader cryptocurrency market observed a mixed market sentiment over the last 24 hours as most major cryptocurrencies record mixed price movements. Major players include XRP and ICP, recording a 2.43 percent incline and a 1.71 percent decline, respectively.

Polkadot price analysis: DOT returns to $6.40

The MACD is currently bearish, as expressed in the red color of the histogram. However, the indicator shows low bearish momentum as the indicator has only recently exhibited a bearish crossover. On the other hand, the darker shade of the histogram suggests an increasing selling activity in the short term. 

The EMAs are currently trading close to the mean position as net price movement over the last ten days is low. Moreover, as the short-term charts observe low volatility, the two EMAs are moving horizontally, suggesting a lack of momentum on either side. Moreover, as the two EMAs move together, the momentum is not expected to increase in the short term. 

The RSI has been trading in the neutral zone for the past 15 days since the index dropped into the oversold region on September 19. Currently, the indicator is trading near the mean position at the 50.00 index unit level and moves upwards with a slight slope. The indicator’s position suggests a lack of momentum on either side but leaves room for volatile movement in either direction.

The Bollinger Bands were diverging recently as the price broke above the $6.40 mark. However, as the price returned to the level, the bands started to converge, suggesting a lack of momentum on either side. Currently, the indicator’s mean line provides support at the $6.35 mark, while the upper limit presents resistance at the $6.54 mark.

Technical analyses for DOT/USDT 

Overall, the 4-hour Polkadot price analysis issues a sell signal, with 12 of the 26 major technical indicators supporting the bears. On the other hand, only four of the indicators support the bulls showing a little to no bullish presence in recent hours. At the same time, ten indicators sit on the fence and support neither side of the market. 

The 24-hour Polkadot price analysis accentuates this sentiment and issues a strong buy signal, with 16 indicators suggesting a downward movement against only one indicator suggesting an upward movement. The analysis shows the bearish dominance across the mid-term charts while showing little to no buying pressure for the asset across the same timeframe. Meanwhile, nine 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 finding support at the $6.20 mark, the bulls were able to initiate a rally that has carried the price to the $6.60 level. However, as the price failed to stabilize at the level, DOT crashed back to the $6.40 level where it currently trades. 

Traders should expect DOT to continue moving downwards as the bears break down the $6.35 support level. However, the bearish activity can be expected to slow down at the $6.00 mark, where key support lies.