The chart has shown negative sentiments today for Polkadot. In the three-month period, the price of the coin held above the $14.40 mark. DOT traded very close to this level at press time.
The increase comes just three weeks after Polkadot recorded a rise in its price to $19. The bulls have tried hard to keep prices under $16. DOT went on a slide and it hasn’t halted since.
The asset’s prices tried to trade higher than the support line, but the goal of $24 seems unlikely at this point.
As prices have considerably fallen in the past week, buyers’ interest in the coin has also been waning off and that has added to the bearish thesis of the coin.
Polkadot Price Analysis: Four Hour Chart
Polkadot is closing in on $14 support level. The coin’s price at time of writing was $14.64. The price of the coin has been above $14 for three months, but DOT is about to surpass that support line.
It also suggests a decrease in purchasing power, which has led to prices moving southwards. Red was the indicator of the amount of assets that were exchanged. The bar was also higher than the last one, suggesting an increase in the selling pressure.
It is currently trading at a 3-month low price and a fall from that level would result in it trading near $13.70. If the price of the coin were to reverse, it would face immediate resistance at $15.40 followed by $16.68.
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Technical Analysis
As this indicated an increase in sellers, the currency’s price was trading below its 20-SMA. The market has lost its momentum and it was sellers who drove prices up. The Relative Strength Index continues its downward trend in line with the same reading.
As the coin neared oversold territory, buyers had already exited. Prices could rise above the 50-SMA (20-SMA) as seen in April’s third week. In the 24 hours since the market closed, DOT suffered a 2% decline in its value. The coin also experienced a 16.2% decrease over the week.
MACD (which is responsible for setting a price trend) had displayed green signal bars on charts in anticipation of an upward swing. But as the prices dropped, these green signal bars lost their power. This indicates a change of price momentum which could be interpreted as a continuing slide for the DOT.
Bollinger Bands (Blue), which is used to determine price volatility, depicts a squeeze that indicates volatility has fallen. This reading could mean a continued bearish price action for the coin over immediate trading sessions.
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Featured image by Unsplash.com. Chart by TradingView.com