Cryptocurrency

Polkadot price analysis: DOT could fall as low as $5 before current decline halts


Polkadot price analysis continues to show bearish signs as price declined more than 4 percent over the past 24 hours, moving as low as $6.58. DOT is facing an extended spell downwards with the current decline initiating on June 25, 2022 at the $8.35 mark. Since then, Polkadot price has moved more than 22 percent downwards and could yet approach support at $6. DOT faces continued rejection at the $7 mark and failed to breach the 9 and 21-day moving averages over the past 24 hours. If the current decline intensifies, DOT could be looking at price levels below the $6 support channel. Conversely, buyer impetus over the current trend could see DOT price extending up to resistance at $10.

The larger cryptocurrency market downtrended earlier in the day, before recouping some of the lost price. Bitcoin recovered from the $19,000 mark with a 3 percent uptrend, while Ethereum moved back above the $1,000 mark with a 4 percent increment. Cardano rose 1.5 percent to sit at $0.44, whereas Ripple dropped 2 percent to move down to $0.31. Dogecoin made a significant 3.5 percent rise to move as high as $0.065 and Solana completed its comeback with a 3 percent increment to move up to $32.78.

Polkadot price analysis: Cryptocurrency heat map. Source: Coin360

Polkadot price analysis: DOT fails to consolidate above crucial EMAs on daily chart

On the 24-hour candlestick chart for Polkadot price analysis, price can be seen extending along a descending triangle pattern that initiated on June 25, 2022. Price has since sustained above the $7 mark, only receding below it over the past 24 hours. Resistance at current level remains around the $10 mark, which could be achieved if immediate buyer impetus comes into the market. However, major technical indicators hint toward continuation of the current bearish trend, with DOT facing further decline towards support at $6.

Polkadot price analysis: 24-hour chart. Source: Trading View

Over the past 24 hours for Polkadot price analysis, DOT failed to challenge the 9 and 21-day moving averages, along with the 50-day exponential moving average at $7.41. Moreover, the 24-hour relative strength index (RSI) can be seen declining into the oversold region at 36.59 and constantly declining. Trading volume over the past 24 hours grew 17 percent, also indicating seller dominance in the market. Additionally, the moving average convergence divergence (MACD) curve can also be seen forming lower highs and a bearish divergence can be expected soon. At the current trend, immediate support will be found at the $6 mark, with further support levels set at $4, $3 and $2, respectively.

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