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Polkadot price analysis: DOT declines to $25 again, more downside to follow?

www.cryptopolitan.com 18 January 2022 10:04, UTC
Reading time: ~3 m

  • Polkadot price analysis is bearish today.
  • Price has receded down to $25.
  • Support for DOT/USD is found at $24.

The Polkadot price analysis shows that selling pressure is still there from the bearish side. The market followed the bearish trend yesterday as the coin lost significant value during this time, as a strong correction was observed yesterday.

The trend has been the same for today, and the crypto pair continues to cover range downwards. However, support is present at $24, and the bears may see some opposition below this point.

DOT/USD 1-day price chart: DOT continues downside below $26

The 1-day price chart for Polkadot price analysis shows bears are defining the price curve for today as well. The DOT/USD has been correcting since yesterday after the bullish recovery towards the $27 range. DOT/USD pair is trading hands at $25.4 at the time of writing. The past week overall proved successful for the crypto pair as it gained 5.97 percent value over this time. But today, the trend has been different as the bears are defining the price function by devaluing the coin further. The moving average (MA) is standing at $26.2 above the price level.

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

The volatility for the given price chart of DOT/USD is mild as the Bollinger bands are showing, with the Upper band at $30 and the lower band at $23, making an average at $26.7. The relative strength index (RSI) is also confirming the downtrend for today as it is on a steep downwards curve at index 44, indicating high selling activity in the market.

Polkadot price analysis: Recent developments and further technical indications

The 4-hour price chart for Polkadot price analysis shows that bearish momentum has been gaining strength over the past few hours, and the price breakout was also in the downwards direction today. No sign of bullish efforts has emerged as the last candlestick is red in color, indicating continuous bearish activity.

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

The Bollinger Bands on the 4-hour chart have been keeping their average at $27, which now indicates resistance for the DOT/USD pair, whilst the upper band is at $28.8, and the lower band is at the $25 mark, which represents support for the crypto pair price. The RSI has fallen in the lower range of the neutral zone at index 35 and continues to move down with time.

Polkadot price analysis conclusion

The Polkadot price analysis shows that the coin is correcting today and may continue to follow a downtrend for the rest of the day as bears rule the market. The support present at $24 may go under test today, but it seems strong enough to keep the cryptocurrency price afloat above. We can assume for the Polkadot to get some bullish help around $24 rage, and if not, then DOT may roll down towards the $22 range.

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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