Polkadot price analysis shows further bearish reading, as price crashed more than 4 percent over the past 24 hours to move as low as $4.23. Since the 13 percent drop on December 16, today was the biggest downfall for DOT that took price more than 86 percent lower than this time last year at a high of $30.83. After trading horizontally for an extended period of time, DOT was expected to breakout and rally from the $4.5 support zone. However, today’s crash justifies an extremely bearish position of the token in the market.
The larger cryptocurrency market lowered from yesterday’s positions, as Bitcoin dropped further below the $17,000 mark to move down to $16,500. Ethereum dropped 2 percent to $1,100, while leading Altcoins also showed minor downtrends across the board. Ripple lowered 3 percent to settle down at $0.35, whereas Cardano lost 5 percent to move down to $0.24. Meanwhile, Dogecoin dipped 4 percent to move as low as $0.07 and Solana crashed more than 12 percent to drop down to $9.77.
Polkadot price analysis: Bearish indicators dominate DOT daily chart
On the 24-hour candlestick chart for Polkadot price analysis, price can be seen forming a descending triangle pattern over the past 24 hours to move below the previous support zone at $4.5. DOT trading volume rose 52 percent today to complement the price dip, indicating that sellers contributed the majority action in the market. Price also dropped further below the 9 and 21-day moving averages over the past 24 hours, as well as the crucial 50-day exponential moving average (EMA) at $4.46.
The 24-hour relative strength index (RSI) can be seen dropping further into the oversold zone at 30.18, indicating severe bearish sentiment in the market for DOT. For a breakout to take place, RSI on the daily chart will have to move into a healthier state above the 45 mark. Meanwhile, the moving average convergence divergence (MACD) curve continues to show a bearish divergence below the signal line.
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