Demand For Polkadot Slumps; Where’s It Headed Next?
May 03 2022 - 9:00PM
NEWSBTC
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. Related Reading | Polkadot, Vechain Founders Pledge
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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. Related Reading
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Featured image from Unsplash.com, chart from TradingView.com
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