DOT faces severe sell-off as price heads to break below $10.8


Polkadot price analysis continues to show bearish signs that only intensified over the past 24 hours. The price is down 12.16 percent over the last day and is now trading just above $10.8.This sell-off comes after a period of consolidation that saw DOT prices trade in a tight range between $12 and $13. However, the bears have taken control in recent hours and have pushed prices below the $11 mark. The current sell-off has seen DOT prices reach the lowest point this month. The price is currently trading at $10.82, which is just a few cents shy of the monthly low at $10.7.

This bearish move comes as the overall market sentiment continues to deteriorate. Bitcoin and Ethereum are both down with a significant value in the last 24 hours, while DOT is down over 12 percent. The support for DOT prices is present at $10.7. This is the level where the monthly low was set and it is also where the 100-day moving average currently sits. If this support level is broken, it could open up the possibility of further downside in DOT prices.

image 161
Cryptocurrencies prices heatmap, source: Coin360

Polkadot price analysis: Bearish engulfing pattern appears on the daily chart

On the 24-hour candlestick chart for Polkadot price analysis, a  bearish engulfing pattern has formed. This is a bearish signal that suggests the price could continue to decline in the short term. The next level of support to watch for is at $10.5, which is where the 200-day moving average currently sits. The overall market sentiment remains negative and there is a risk of further downside in DOT prices. The next level of support to watch for is $10.5.

image 159
DOT/USD 1-day price chart, source: TradingView

The current trend has also moved well below the crucial 50-day exponential moving average which is a sign that the bulls are losing control. Furthermore, the 24-hour Relative Strength Index (RSI) shows bearish highs as it heads towards the oversold territory. This suggests that the bears are in control of the DOT market and a further decline is possible. The upper band of the Bollinger band is residing at the  $12.4 level, which is where the price was trading just a few hours ago. This suggests that there is still some room for downside in DOT prices.

The MACD indicator is also showing signs of bearish momentum as it heads towards the zero line. The 100-hour moving average has continued to move lower and is now at $11.1.Conversely, a bullish outlook would see a daily close-up above $11.5 which is the next level of resistance. This would invalidate the bearish engulfing pattern and could see DOT prices move back towards $12.

The 4-hour timeframe for DOT/USD pair: Bears take control as DOT prices head towards $10.8

The 4-hour timeframe for DOT/USD is currently in a downtrend as the price has fallen below the  $11.8 level. The support levels to watch for are $10.5 and $10.2. A break below these levels could open up the possibility of further downside towards the $10.0 level. On the other hand, a move back above $10.8 would invalidate the bearish trend and could see DOT prices move towards $12.2.

image 160
DOT/USD 4-hour price chart, source: TradingView

The prices are currently trading below the 50-day SMA which is a bearish sign. Furthermore, the Stochastic RSI indicator has moved into the oversold territory which suggests that the bears are in control of the market. However, the MACD indicator is still showing signs of bullish momentum as it heads towards the zero line. The RSI is currently at 29 which suggests that the DOT market is oversold and a bounce is possible.

The immediate support for DOT prices lies at $$10.5 which is where the 200-day moving average currently sits. The next level of support to watch for is at $10.2 which is where the 100-hour moving average currently sits. The Bollinger bands are expanding, which indicates that the market volatility is extremely high.

Polkadot price analysis conclusion

The Polkadot price analysis is bearish as seen on the 1-day and the 4-hour price chart. Bears are increasing their grip on the market as prices head lower in the next few sessions. Bulls are seen to be struggling to defend the  $11.0 level and a further decline is possible.

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.

Comments (No)

Leave a Reply