Demand For Polkadot Slumps; Where’s It Headed Next?
Polkadot has displayed negative sentiments on the chart today. Over the last three months, the coin had continued to hold its prices above the $14.40 price mark. At press time today, DOT was trading extremely close to that level.
This comes after Polkadot had registered a price hike to $19 during the third week of last month. The bulls had tried very hard to defend the prices at the $16 price support level. DOT went on a slide and it hasn’t halted since.
Prices of the asset tried to trade above the aforementioned support line and tried to push the price north but it seems like aiming for $24 could be far fetched for the coin at the moment.
As prices have considerably fallen in the past week, buyers’ interest in the coin has also been waning off and that has added to the bearish thesis of the coin.
Polkadot Price Analysis: Four Hour Chart
Polkadot has been closing in on the support line of $14 as the coin was priced at $14.64 at the time of writing. The coin had managed to keep prices above the $14 support level for the past three months but at the moment, DOT was about to break through the support line.
This has also suggested a fall in buying strength and that has caused prices to travel southwards. The volume of assets exchanged was seen in red and the bar was taller than the previous one which could mean an increase in selling pressure.
DOT is trading on a three-month low price level and fall from this level would mean that it would trade near the $13.70 price mark. In case of a price reversal, the immediate resistance for the coin stood at $15.40 and then at $16.68.
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Price of the coin was seen trading below the 20-SMA as that indicated an increase of sellers in the market. Buyers have lost momentum in the market and sellers were responsible for driving prices ahead. Corresponding to the same reading, the Relative Strength Index continued on a downward slide.
Buyers had exited the market as the coin was nearing the oversold territory. A push in the buying strength can help prices rise up above the 20-SMA and 50-SMA as seen in the third week of April. Over the last 24 hours, DOT lost 2% of its market value and in the past week, the coin registered a 16.2% downfall.
MACD which is responsible for determining a price trend had portrayed green signal bars on the chart in anticipation that prices might see an upward swing but as the prices dipped, the green signal bars have lost their vigour. This indicated a change in price momentum and that could mean a continued downslide for DOT.
Bollinger Bands (Blue) is an indicator that ascertains price volatility had depicted a squeeze which meant that volatility has decreased. This reading could mean a continued bearish price action for the coin over immediate trading sessions.
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Featured image from Unsplash.com, chart from TradingView.com