Polkadot price analysis: DOT not ready to challenge $14
3 min readTL;DR Breakdown
- Polkadot price is expected to fall to below $13
- The closest support level lies at the $12
- Polkadot price is facing resistance at the $13.5
After finally climbing past the $17 mark, Polkadot price failed to continue its bullish rally and the price has dropped to just above $13.While the price at press time holds just above $13, the bearish pressure is very strong and the price may fall further in the immediate future if the selling continues
The broader cryptocurrency market observes a bearish sentiment across the last 24 hours with most major cryptocurrencies recording a loss across the time frame. The major players that recorded a loss include BNB, and Dogecoin that record a 0.18 and a 7.47 percent decrease respectively. Meanwhile BTC and ETH record a 2.94 and a 4.18 percent decrease.
Technical indicators for DOT/USDT
Across the technical indicators, the MACD shows strong bearish momentum as observed in the increasing size of the dark red histogram. The indicator has been seeing bearish momentum for the past 3 days and is currently oscillating around the -0.5 mark. Across the EMAs, 26-EMAis trading above the 12-EMA and continues diverging while both EMAs fall.
The RSI is currently trading in the neutral zone a little above the 30.00 mark just above the oversold region and does not issue a signal. The indicator has been trading in the neutral zone since yesterday. At press time the RSI has again had a small spike towards the oversold region suggesting an increasing bearish presence at the current price level.
The Bollinger bands are currently wide but will converge rapidly in the immediate future as the bears take charge of the market momentum. The bands’ convergence suggests a drop in volatility for the Polkadot price in the short term. Moreover, as the price is consolidating below the bands’ mean line, the bands will be leaning downwards for the next few candlesticks.
Overall the 4-hour technical analysis issues a strong sell signal with 16 of the total 26 major technical indicators suggesting their support for a bearish movement. On the other hand, only one indicator issues a buy signal suggesting bullish momentum. Meanwhile, nine indicators sit on the fence issuing no support for either side of the market.
The 24-hour technical analysis shares this sentiment and also issues a sell signal with 14 of the 26 indicators suggesting a bearish movement against only two indicators suggest a bullish momentum. Meanwhile, ten indicators remain neutral and do not issue any signals at the time of writing
What to expect from Polkadot price?
Traders should expect Polkadot price to continue to fall towards its support level of $12 or even beyond that considering the bearish nature of the market today.The short term and midterm indicators also compliment this and describe an increasing bearish trend for the Polkadot price.
However, if the buyers defend the $12 support level, DOT price could recover and have a chance to move above the $13 and even challenge the $13.5 mark . However, due to the strong selling pressure and the low bullish momentum, further upwards movement is unlikely, and the price action will stagnate at this price level.
