Polkadot Price Analysis: DOT/USD is bearish for the next 24 hours
- Polkadot price analysis is bearish today.
- DOT/USD is currently trading at $39.4.
- Sellers look to retest the previous low next.
Today’s Polkadot price analysis is bearish, as we saw a failure to rise yesterday, resulting in a lower high established at $41.5. As a result, DOT/USD should rebound and test the previous low over the next 24 hours. Let’s see what the data says about the short-term trend.
In addition, yesterday’s upper high failed to break above the previous upper high. We expect a retest of the previous low next. However, if a further drop below our predicted target of $45.24, the breakdown will signal a new lower low being established. This is according to technical analysis. Also, if prices break through the ascending trendline, it will be the second time in less than two weeks that this has happened. This should cause further alarm for sellers looking to get involved with Polkadot.
Another key reason why it’s not worth getting involved with DOT at this point is that there are already plenty of alternative cryptocurrencies out there which are cheaper.
However, if you do want to take advantage of potential price swings, either way, make sure you understand all of the risks attached to trading cryptocurrencies before you do so. The cryptocurrency market is extremely volatile, and you need to make sure that you understand how it works before investing.
Investors should make sure they don’t get involved with leverage trading, as the high levels of volatility mean that leveraged positions are likely to get liquidated if there is a sudden sharp drop in DOT price. You can also use stop-loss orders to ensure that your capital is protected at all times from large market swings.
DOT/USD 4-hour chart: DOT looking to retest the $38 support
On the 4-hour chart, we see another drop in the Polkadot price today as bears look to test previous lows once again.
On Sunday, the price of Polkadot continued to trade in a bearish market structure. DOT/USD has seen its bullish momentum stifled following the creation of a new major swing high of $55.
The current low of $38 was established due to a sequence of lower lows and highs, with selling pressure slowing down over the last week. Resistance has been established at $43, where another lower high was made and retested on Monday.
The price of Polkadot has fluctuated in a narrow range since the beginning of April, with both a slightly higher low and lower high establishing. On the other hand, the overall momentum is still bearish, suggesting that DOT/USD may set additional lower lows later this week.
Polkadot Price Analysis: Conclusion
The price of Polkadot is presently bearish as we anticipate further declines to follow after yesterday’s high at $41.5. Later today, DOT/USD is expected to test the prior lows around $38 – $39, with a strong potential of breaking lower.
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