Today’s Polkadot price analysis reveals the prices are on a prevailing downtrend that has been seen since yesterday’s market rally. The 5.37 percent drop in prices has taken DOT down to $8.59 from the intraday high of $9.11 that was seen yesterday. This is indicative of a broad-based crypto market correction triggered by Bitcoin’s price drop below the $30,000 level.DOT prices are currently trading at $8.59, which is down around 8 percent from the local highs of $9.35 set on Friday.
The correction has been driven by a broad-based selloff in the crypto market that has seen most altcoins recording significant losses.DOT prices had been on an uptrend since last Friday and had risen by around 20 percent from the lows of $7.20 seen at the start of the week. The rally had taken DOT prices to a new all-time high of $9.35 on Monday. However, the rally ran out of steam at this level and was followed by a sharp sell-off that has seen DOT prices drop to the current levels as the week ended.
Polkadot price action in the last 24-hours: DOT prices are down 5.37 percent
The Polkadot price analysis shows shows the prices have moved lower in a corrective manner after rising to new all-time highs on Monday. The sell-off from the highs has taken DOT prices below the key support level at $9.00 and also below the 20-day moving average (MA). This has opened up the possibility of DOT prices retesting the $8.50 level in the near term.
The RSI indicator is currently at 45 and is showing signs of bearish divergence as it starts to move lower from the highs seen last week. The MACD indicator is currently in the bearish zone with a slight downward slope. This indicates that the bearish momentum is still present in the market.
Polkadot price action on a 4-hour price chart: Bearish trend line intact
The Polkadot price analysis indicates that the prices are currently trading below the $9.00 level and the bearish trend line that has been in place since Monday’s highs. The key support levels to watch out for in the near term are at $8.50 and $8.20. A break below these levels could see DOT prices drop towards the $7.80 level in the short term.
The moving averages lines are currently in a bearish configuration with the 20-MA being below the 50-MA. The RSI indicator is currently at 42 and is showing no signs of a reversal at this stage. The MACD indicator is also in the bearish zone and is slowly moving towards the centerline.
What to expect from DOT prices in the short term?
DOT prices are currently in a corrective phase after rising to new all-time highs on Monday. The key support levels to watch out for in the near term are at $8.50 and $8.20. A break below these levels could see DOT prices drop towards the $7.80 level in the short term. On the upside, the key resistance levels are at $9.00 and $9.20. A move above these levels could see DOT prices retesting the $9.35 level in the near term. The overall market volatility is high as indicated by the wide Bollinger bands.
Polkadot price analysis conclusion
Polkadot price analysis shows a bearish market sentiment formed during today’s opening of the market as bears continue to dominate the market. Out of the 26 technical indicators, 12 indicators signal a sell, 9 are giving a hold rating, 4 are signaling a buy, and 1 is signaling a strong buy. Our technical analysis shows that the market is expected to remain bearish in the near term as the market sentiment remains negative.
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