Over the past few days, Polkadot’s price has fallen. The price has fallen steadily despite the coin being traded laterally. The DOT has fallen by 4.2% in 24 hours and the price of the coin gained only minor amounts over the past week.
Market weakness is usually due to altcoins trading in a downtrend or sideways. After breaking below the $14 support, the coin has moved south ever since.
As the bears took control of the price action, buying strength was also affected. Despite the strength of the bears, DOT attempted to continue moving up the price action but was repeatedly met by selling pressure.
After pushing the price up a bit above $9.60, the bulls can allow buyers to try to re-enter market. This could bring in some relief to the altcoin’s price.
Polkadot Price Analysis: One Day Chart
The one-day chart showed that DOT traded at $9.30. Polkadot had been consolidating, but was trying occasionally to move beyond the current level. The buying power of bears has decreased, and they have become stronger. If the price falls below $9.30, the coin will stop at $8.71.
This would result in DOT reaching the August 2021 price mark. The overhead resistance of the coin was at $10. Any push above that level will bring the altcoin to the $11.87 mark.
It was shown in red that the volume of coin being traded had dropped. It indicated that the bulls were at risk.
Technical Analysis
DOT noticed a constant increase in buying power as shown on the Relative Strength Index. The RSI has shown an upward trend. As the indicator recorded a decrease in buying power, which was interpreted as an indication of increased selling pressure at press time, it showed a fall in coin’s purchasing strength.
Concerning DOT registering a shift of price action, the asset’s price was slightly higher than the 20-SMA. The market was slowly gaining momentum. This indicated that sellers were likely to lose their ability to continue driving the price momentum.
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DOT gave a buy signal indicating that there could be a price change. The price momentum is represented by Moving Average Convergence divergence. It indicated bullishness. MACD showed green signals bars, which indicate a buy signal.
Bollinger Bands indicate that price volatility is decreasing. The signs of price volatility are indicated by narrowing bands.
The same price fluctuation is caused by a drop in the DOT. If the market’s buying power increases over the next trading session, DOT may attempt to move above this immediate resistance.
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