The market has extended its losses to press time, and Polkadot is in sharp decline.
Bitcoin plunged to $28,000, resulting in a loss of 7.7% within the past 24 hours. The daily charts show losses for all major altcoins.
Polkadot traded in a descending trendline. However, DOT attempted to recover from charts. The recovery can be stalled if buyers don’t return to the market.
The altcoin price traded close to the $8.04 support level.
This was the last time that DOT traded at this price in July 2021. Polkadot has shown rangebound rallies in the past four months.
Over the 17 week period, the price of DOT fluctuated between $24-$16. Polkadot has staged a revival but it’s too soon to say if the coin will move northbound.
Polkadot Price Analysis: One Day Chart
At the time this article was written, Polkadot traded at $10.64. Over the last 24hrs, DOT has lost more than 12%, and the coin suffered a loss of close to 30% in the last week.
A declining trendline indicates bearishness, even when the coin tried to move above $10.80 as its immediate resistance.
If the price of the coin rises above $10.80, it could reach $13.22. In order to discredit the bearish thesis, the coin needs to trade above $14.
On the one-day chart, there were a number of green arrows that indicated the coin’s bearish engulfing candlesticks.
Bearish candlesticks marked the beginning of bearish price action.
The price resistance of DOT is $16.06 and $17.46 respectively in the event that the coin fails to revert.
It was in the color green that the coin’s trading volume was displayed. This indicated that there was an upward trend in the price of the coin.
Technical Analysis
Oversold Polkadot over the last few days however, the coin began to show an increase in buyer strength.
On the 1-day chart, Relative Strength Index saw an increase. Buyers began entering the market, and the RSI crossed the threshold of the oversold zone.
Buying pressure remained low in the market as the coin’s price was still driven by sellers in the market, despite the uptick. The Directional Movement Index illustrates market price momentum.
DMI was shown as negative in the chart because the -DI was higher than the +DI, which indicated bearish price movement.
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Polkadot had been trying to recover from its chart due to the price action being reflected in the indicators. Chaikin Money Flow depicts capital outflows as well as inflows.
The one-day chart showed that Chaikin Money Flow registered an increase, which points to capital inflows exceeding outflows.
An Awesome Oscillator indicates market price momentum. Polkadot’s price direction was still negative as the AO flashed red histograms beneath the half line.
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