Polkadot Price Depreciates, Will The Bulls Be Able To Defend This Support Line?

Over the past 24 hours, Polkadot’s price has been retracing on its chart. On its 1-day chart, the coin is showing sideways movements. The coin experienced a loss of close to 2 percent during this time.

In the week just past, DOT saw an increase of more than 6%, which allowed bulls to gain strength and move beyond the consolidation phase.

Technically, there was no change in the outlook. However, it seemed that the bullish momentum is waning.

Bitcoin’s chart also shows a slight retracement. Many altcoins have also started to trade sideways following BTC’s price action.

The bulls behind Polkadot can be resurgent if it reaches the $6.70 mark. The altcoin may fall further if it is subject to lateral trading.

Polkadot should not fall below its $6.30 local support level. There could be further falls if the support line is lost.

There are mixed signals in the broader market, with coins falling while others gain strength. However, Shiba Inu and Dogecoin continue to enjoy bullish momentum.

Polkadot Price Analysis: One-Day Chart

Polkadot Price
Polkadot was listed at $6.36 in the one-day charts | Source: DOTUSD on TradingView

At the time this article was written, DOT traded at $6.36.

After weeks of price consolidation, the altcoin finally saw bullish price movement.

Even though Polkadot’s bulls pushed hard to break past the $6 price mark, the coin has seemed to lose its bullish strength.

The immediate resistance level for Polkadot is $6.70. Moving higher than that level could help DOT trade near the $7 price mark.

This level could help the coin win the back of the bulls.

Polkadot is closest to defending the $6.30 support line. This line is the closest support level that Polkadot has to defend and will push the altcoin price up to $5.80. In the previous session, Polkadot volume traded fell slightly. This indicates that sellers are more in demand.

Technical Analysis

Polkadot Price
Source: TradingView| Source: DOTUSD on TradingView

Once it had gained its currency, the altcoin quickly entered the positive buying zone. It did however register a decrease in buying pressure at press time.

Although the Relative Strength Index was higher than the half-line, it showed a decrease in movement which indicates a decline in demand and buyers for altcoin.

Polkadot prices were also falling below the 20 SMA, which indicates that buyers are declining and that sellers are driving price momentum.

Polkadot Price
Source: DOTUSD on TradingView| Source: DOTUSD on TradingView

Another technical indicator indicated that bulls were gradually leaving the market. It shows price momentum and formed histograms below the half-line.

This meant the coin would soon see a fall in its price.

Chaikin Money Flow is used to calculate the capital outflows or inflows for an asset.

This indicator showed a half-line and a decline, which indicates that capital inflows have declined within the past 24 hours.

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