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Polkadot Technical Analysis: Polkadot Falls Below $7.00


cryptoknowmics.com 06 July 2022 13:14, UTC
  
Reading time: ~3 m

Polkadot technical analysis indicates that DOT has failed to break past $7.20, and the subsequent rejection has caused the price to fall below $7.00. Currently, DOT holds support at $6.70, but selling pressure is mounting. The cryptocurrency market as a whole showed a bearish trend in the last 24 hours, with most of the significant coins declining in price. ETH and BTC had a 2.20% and 1.61 percent drop, respectively, over the same time.

Polkadot Rejected At $7.230

Technical indicators for DOT/USDT by Tradingview The MACD is currently in a bullish trend, as seen by the green color of the histogram. However, in recent hours, the indicator has exhibited slow buying momentum. The short height of the histogram suggests poor buying momentum. Furthermore, the brighter histogram indicates an increasing selling pressure as the price approaches $6.50. The net price movements over the last seven days remain modest, consistent with the EMAs being close to the mean position. However, as markets witness selling activity, the EMAs indicate a bearish convergence, with the 12-EMA declining to reflect recent price changes. The RSI was in a favorable position yesterday, with the bulls attempting to break through $7.20. On the other hand, the index is trading near 50 now. It fluctuates around 43.66 as it approaches the mean position of 50.00, suggesting significant selling pressure. The setup gives little room for the further ascent over the short term, and the slope indicates a bearish bias. The Bollinger Bands had expanded for the past few days until recently when they widened again. As price volatility has decreased around the $7.00 mark, the bands have gradually diverged since yesterday as DOT attempted to rally to $7.20. However, now the bands suggest convergence as the price falls back. Currently, the indicator's bottom limit offers support at $6.58, with the mean line and the upper limit serving as resistance levels at $6.86 and $7.13, respectively.

Polkadot Technical Analysis On The 4-Hour Price Chart

Overall, the 4-hour Polkadot technical analysis gives a sell signal, with 17 of the 26 most essential technical indicators pointing to the downside. On the other hand, only one indicator supports the bears, showing a weak bullish presence in recent hours. Meanwhile, eight indicators are positioned on the fence and back on neither side of the market. The 24-hour Polkadot price analysis likewise conveys this sentiment, giving a sell signal with 14 indicators pointing downwards and two indicators pointing upwards. The mid-term charts reveal that the bearish trend has persisted, with weak buying pressure for the asset. Meanwhile, eight indicators are neutral at press time and do not issue any signals.

What Are The Possible Outcomes Of Polkadot Technical Analysis?

4-hour price chart by Tradingview

After rejection at the $7.20 mark, bulls got overwhelmed by the bears, and the price fell below $7.00, as shown in the Polkadot price analysis. The price is presently supported by $6.70 as the bulls defend it against the threat of a drop to $6.50. The price has been in a strong downtrend for over two weeks, strengthening the bearish pressure on the market.

Conclusion

As selling continues across the Polkadot markets, traders should anticipate DOT to fall to $6.50. Furthermore, as bullish pressure evaporates, there is room for a significant bearish movement across the mid-term graphs. The BTC/USD pair currently has a strong bearish bias, as suggested by the mid-term technical analysis. This is supported by the intermediate technical analyses, which show a bearish dominance in the 4-hour and 24-hour timeframes. As a result, the price is expected to fluctuate between $6.50 and $6.75, with a potential downward movement to the $6.20 mark.


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