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Polkadot price analysis: DOT steps down to three months low at $25.5 as downtrend extends

Analytics

www.cryptopolitan.com 17 December 2021 11:01, UTC
  
Reading time: ~3 m

  • Polkadot price analysis is bearish today.
  • Resistance for DOT/USD is present at $26.4.
  • Support for DOT/USD is present at $24.4.

The Polkadot price analysis is bearish again as the crypto pair has stepped down to $25.5, setting a lower low. The price has come down to a three months lowest level after 28th August. The most recent bearish momentum started when the coin faced rejection at the $26.2 level yesterday and started to decline. The bears extended the decline today as well, and the price traveled downwards below the lowest price levels of September 2021. The next support is present at a lower level of $24.4.

DOT/USD 1-day price chart: DOT to set a lower low below $26

The 1-day price chart for Polkadot price analysis shows the coin is covering range downwards again as the price function traveled from $26 to $25.5 at the time of writing. The cryptocurrency has lost a value of more than five percent over the last 24 hours and has lost a value of 4.27 percent over the course of the last seven days. The trading volume has also decreased by 15.22 percent, and the market cap has also decreased by 5.16 percent over the last 24 hours resulting in the market dominance of 1.15 percent for the 10th ranked cryptocurrency.

DOT/USD 1-day price chart. Source: TradingView

The Volatility for DOT/USD is high, as the Bollinger bands are maintaining the distance between their extreme ends. The upper band is present at the $38 mark, and the lower band is present at the $21.9 mark representing the support for DOT/USD pair. The average of the Bollinger bands at the $30 mark represents resistance for DOT.

The relative strength index (RSI) is trading in the lower half of the neutral zone at index 33 on a downwards slope. The indicator shows comparatively more selling activity in the DOT market and indicates the price is under pressure as the RSI score is quite low.

Polkadot price analysis: Recent developments and further technical indications

The 4-hour Polkadot price analysis report shows the bears were in the lead for the last 20 hours, but bulls are now providing support to the coin price as it reached $25.5 level as can be seen a very small green candlestick is forming on the charts. This is an indication of the presence of bullish elements at this stage, but we assume support is present around $24.4, so the coin may start to decline further.

DOT/USD 4-hours price chart. Source: TradingView

The RSI is also hinting at the presence of the bullish elements as the RSI curve has flattened out due to the buying support that just showed up as the RSI is now maintaining its level at index 41. The volatility is low on the 4-hour chart as the Bollinger bands have converged till 16th December and now are trading as a narrow channel with its extreme ends at $27.7 for the upper value and $24.7 for the lower value, respectively, while making an average at the $26 mark. The MA is present above the volatility indicator average line and the price level at the $26.4 mark as well.

Polkadot price analysis conclusion

The Polkadot price analysis suggests the coin is continuing its downslide as the price function remains under pressure. The bullish activity seen on the 4-hour chart may not last long enough, and we expect the price to move further down into the $24 range later today.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.


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