The Polkadot (DOT) price analysis persists to indicate a bearish outlook as the market undergoes a notable decline. Within the past 24 hours, the asset’s 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 Polkadot (DOT). In terms of technical indicators, Polkadot (DOT) has exhibited bearish strength, with low buying pressure. Both demand and accumulation levels have decreased according to the daily chart.
Given the indecisiveness in Bitcoin’s chart, numerous crypto altcoins, including Polkadot (DOT), have either remained constrained under immediate resistance levels or have entered consolidation phases. It is critical for Polkadot (DOT) to sustain a price level over its immediate support to avoid the likelihood of another substantial decline in next trading sessions.
If selling pressure intensifies, there is a danger of the crypto altcoin breaking below its critical level of support. The declining market cap of Polkadot (DOT) signifies that sellers are still exerting control over the asset.
Polkadot (DOT) Price Analysis: One-Day Chart
As of the present writing, Polkadot (DOT) is being traded at $5.29, with Polkadot (DOT) hovering near its critical level of support of $5.15. Should the price fall below this level, it may further decline to $5. On the upside, a whole lot of resistance level is observed at $5.40.
If Polkadot (DOT) bulls manage to surpass this resistance, it can potentially potentially trigger a rally towards $5.71, indicating a 6 percent appreciation.
Further progress could then lead the price into the $6 range. It’s worth noting that, the volume of trading of Polkadot (DOT) in the last session was relatively low. This suggested that buying strength was weaker compared to selling pressure.
During the months of April and May, the demand for Polkadot (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.
In addition, Polkadot (DOT) remained below the 20-Simple Moving Average (SMA), further affirming the dominance of sellers in driving the price momentum.
Nonetheless, if Polkadot (DOT) manages to surpass the $5.30 mark, it has the capacity to go 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 Polkadot (DOT) declined, the crypto 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 Polkadot (DOT) as they will determine whether the price breaks out over or below the critical support line.