The Polkadotย (DOT) price analysis persistsย to indicate a bearish outlook as the market undergoes a notable decline. Within the past 24 hours, the assetโs price experienced a slight decline, demonstrating sideways movement under the influence of bearish sentiment.
On a weekly timeframe, there has been limited movement in the price of Polkadotย (DOT). Inย termsย ofย technical indicators, Polkadotย (DOT) has exhibited bearish strength, with low buying pressure. Both demand and accumulation levels have decreased accordingย to the daily chart.
Given the indecisiveness in Bitcoinโs chart, numerous cryptoย altcoins, including Polkadotย (DOT), have either remained constrained under immediate resistance levels or have entered consolidation phases. It is critical for Polkadotย (DOT) toย sustain a price level over its immediate support to avoid the likelihoodย of another substantial decline in next trading sessions.
If selling pressure intensifies, thereย is a danger of the cryptoย altcoin breaking below its critical levelย ofย support. The declining marketย cap of Polkadotย (DOT) signifies that sellers are still exerting control over the asset.
Polkadotย (DOT) Price Analysis: One-Day Chart
As of theย present writing, Polkadotย (DOT) is being traded at $5.29, with Polkadotย (DOT) hovering near its critical levelย ofย support of $5.15. Should the price fall below this level, it may further decline to $5. On the upside, a wholeย lotย of resistance level is observed at $5.40.
If Polkadotย (DOT) bulls manage to surpass this resistance, itย canย potentially potentially trigger a rally towards $5.71, indicating a 6 percent appreciation.
Further progress could then lead the price into the $6 range. Itโsย worthย notingย that, the volumeย ofย trading of Polkadotย (DOT) in the last session was relatively low. This suggested that buying strength was weaker compared to selling pressure.
Technical Analysis
During the months of April and May, the demand for Polkadotย (DOT) remained relatively weak. Analysis shows that the Relative Strength Index (RSI) remained below the 40-mark, indicating that selling pressure outweighed buying pressure in the market.
Inย addition, Polkadotย (DOT) remained below the 20-Simple Moving Average (SMA), further affirming the dominance of sellers in driving the price momentum.
Nonetheless, if Polkadotย (DOT) manages to surpass the $5.30 mark, it has theย capacity to goย up over the 20-SMA line. This could potentially attract buyers back into the market and shift the overall sentiment in a more positive direction.
As demand for Polkadotย (DOT) declined, the cryptoย altcoin exhibited decreasing buy indicates on its one-day chart. The Moving Average Intersection Divergence (MACD), which represents price momentum and tendency reversal, displayed declining green histograms, indicating a weak buy signal for DOT.
Furthermore, the Bollinger Bands, which illustrate price volatility and fluctuations, exhibited constriction, indicating a range-bound movement.
The next trading sessions hold importance for Polkadotย (DOT) as they will determine whether the price breaks out over or below the critical support line.
