The Polkadot market had reached $8 before the bulls gave up steam. DOT was 3.6% less in the 24 hours since its chart.
DOT’s value has increased over the last week but was largely nullified by press.
As it was declining before, the Polkadot market price had been making an upward trend over the past two days. During the recovery period, buyers had intervened.
At the time we wrote this, however, buyers were exiting the market once more. Technically, the outlook was bearish for the coin with the sellers taking control of the market.
Polkadot prices were between $5.52 and $6.16 in the support zone. A dip below the $5.52 level could see DOT drop to $5.
As Bitcoin’s bulls fizzled out in the market, most altcoins that registered gains also started to lose their bullish momentum.
The coin may attempt to retest its resistance line if there is more demand for DOT on the chart. If the buying power of DOT continues to decline, DOT may return to its price support line.
Polkadot Price Analysis: One Day Chart
At the time of this writing, DOT was at $6.29. The altcoin’s price was $8. Bulls attempted to protect it, but the buying power fell and the altcoin dropped on its chart.
As the Polkadot has been rejected several times at that price level in the past, it will see a hard price limit at $6.80.
If DOT moves above $6.80, it will be nearing the $7.73 mark. However, the $6.17 local support level was for the coin. Any fall from this mark would propel Polkadot towards the $5.52 price level.
The amount of Polkadot that was traded in the previous trading session fell. This indicates a decline in buying power.
Technical Analysis
DOT showed that the daily chart was showing a decline in buying power. The Polkadot market saw increased selling pressure for most of the month. This has led to more bear strength.
Relative Strength Index was lower than the half-line. That meant buyers were more active in the market, while sellers were less prevalent.
Polkadot’s price was lower than the 20-SMA, which can be taken to mean less demand. This also indicated that the price momentum was being driven by sellers on the 1-day chart.
DOT’s technical indicators displayed that selling strength had taken over the chart. Moving Average Convergence Divergence is a measure of price momentum and the overall price action.
Red signal bars on the MACD continue to be visible, and were also sell signals for the coin. Bollinger Bands are used to measure volatility and fluctuation in price.
As they reflect the incoming price fluctuations of altcoin, the bands widened.