Polkadot price analysis: DOT value declines to $4.89 After the bearish extension

Polkadot price analysis shows a decline in price today as the market is still uncertain about the potential for growth in the near future. The digital currency has seen a decline of 0.46% over the last 24 hours and currently trading at $4.89, down from its all-time high of $4.96. Polkadot has seen a steady decline since its all-time high and is currently showing signs of bearish sentiment. The support level for Polkadot still stands at $4.86 and if broken could lead to further losses for the digital currency, while the resistance is at $4.96.

Polkadot price analysis 1-day chart

The one-day Polkadot price analysis reveals that the digital currency has been trading within a descending channel since the beginning of today. The bulls have had difficulty pushing the price above the $4.86 support level, which has been a major hurdle for the digital currency. 

The relative strength index RSI is currently hovering around 40 which shows that the bears are in control of the market. Moreover, the Moving on towards the moving average (MA) value, which is $4.7351, for a one-day price chart. . The market volatility for DOT/USD pair is low as the price is trading in a tight range below $4.89. The upper Bollinger band value is now $ 4.9506, whereas the lower Bollinger band value is at $4.1638.

DOT/USD 4-hour price chart: Price decline to $4.89 after bearish drift

The hourly Polkadot price analysis shows that the market is still in a downward trend since the beginning of today. Although the bulls were over the market yesterday and the price rose to $5.06, the digital currency has reversed and is trading below this level today. The bears have successfully tackled unfavorable circumstances as the bullish current has been disrupted. The price is now at $4.89, and further devaluation is to follow if the selling activity experiences a further rise.

The Bollinger bands have diverged, and a squeeze can be observed, which might give rise to high volatility in the near future. Furthermore, the moving average (MA) value is presently at $4.8975, which is relatively close to the DOT current value of $4.89.The 20 SMA is currently at $4.8469, whereas the 50 SMA is at $4.8804 and the RSI indicators are at 64.31, are currently in oversold territory, and are indicating a potential for a bullish.

Polkadot price analysis conclusion

Overall, the market sentiment still remains bearish, and traders should be cautious when entering into any long positions. A break of the $4.86 support level could lead to further losses for the digital currency in the near future. Therefore, traders should wait for a break above $4.89 before entering into any long positions.