Polkadot price analysis: DOT rally fails as price drops towards the $20 mark

TL;DR Breakdown

• Polkadot price dropped more than 5 percent over the past 24 hours to move as low as $21.21
• Trading volume rose near 25 percent to confirm bearish outlook
• Sellers set stop loss at today’s high of $23 to take out profits

Polkadot price analysis for the day shows largely bearish signs as price fell more than 5 percent on the day to reach as low as $21.21. After making a strong return earlier in the day with price recording a monthly high of $23.13, the progress faltered. Sellers came into the market by the end, having placed stop loss at $23 and take out profits out of the DOT market. However, the token still stands 37 percent above the 2022-low of $15.80 that was seen in January. Over the next 24 hours DOT needs to close above $21 to avoid a significant descent, however price is expected to drop as low as $20 before initiating the next upturn.

The larger cryptocurrency initiated an overall slide downwards, led by Bitcoin dropping below $43,000 with a 2 percent decline. Ethereum followed suit with a 3 percent drop to put price just above $3,000. Among Altcoins, Dogecoin dropped 5 percent to $0.154, Cardano 4 percent to $1.145, and Solana dropped 8 percent down to $110.683. The only upward movement on the day was recorded by Ripple, where price rose 3.5 percent to move up to $0.809.

DOT/USD 24-hour chart: RSI lowers for the first time in the week

The 24-hour candlestick chart for Polkadot price analysis shows mixed signals containing residual bullish indicators from the push made by DOT earlier in the week, along with the descent over the last 24 hours. Price sits above the crucial 25 and 50-day exponential moving averages (EMAs) at $20.90 and needs to close above this level to avoid further decline over the next 24 hours. The relative strength index (RSI) highlights dropping market valuation for the first time in a week at 48.72, while the moving average convergence divergence (MACD) still poses a bullish outlook for DOT above its neutral zone.

DOT/USD 4-hour chart: Classic buyer/seller battle sets up over the short-term trade

On the 4-hour chart for the Polkadot price analysis, price can be seen becoming subject to an upfront battle between buyers and sellers. Sellers dominated the day’s trade, pulling Polkadot price down to the near $20’s, but buyers came in late into the day to ensure a significant pullback was avoided. Currently, the demand zone lies near $21.47 and buyers would be looking to push price up to the profit-taking level at $23.50. The 4-hour RSI also shows declining market valuation at 48.83.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.