Polkadot Bears Are Back, Can DOT Revisit $7 Soon?
April 20 2023 - 11:00AM
NEWSBTC
The Polkadot price had been recovering in the past few days, but it
has been unable to sustain the momentum as the bulls’ progress has
been halted at press time. Over the last 24 hours, the coin
experienced a dip of 2%, which has also caused a depreciation of
almost 1% in the weekly timeframe, erasing most of the weekly
gains. The technical outlook for Polkadot is showing signs of
bearish strength building up. It is currently trading below a
crucial resistance level. The resistance level must be surpassed
for the bulls to experience some relief. Related Reading: Bitcoin
Bearish Signal: Supply Older Than 7 Years On The Move However, the
demand and accumulation remain low on the one-day chart, which is a
concern. If bears push again, Polkadot could drop straight to its
local support level. The broader market’s strength is crucial for
Polkadot to regain its lost value. Unfortunately, with Bitcoin
losing steam and falling below $30,000, most altcoins are also
experiencing undecided price movements, which puts further pressure
on Polkadot’s price recovery. At the time of writing, the market
capitalization of DOT has fallen, indicating mounting short-term
selling pressure Polkadot Price Analysis: One-Day Chart The
Polkadot price is trending at $6.40, with overhead resistance at
$6.60, a crucial level for the altcoin. This level has previously
acted as a bearish block or a selling zone for the coin. If DOT
manages to breach the $6.60 price level, it may face another
resistance at $6.80 before finally reaching $7. However, if
Polkadot fails to break past the overhead ceiling, the next support
levels would be at $6 and then at $5.80, respectively. The amount
of DOT traded in the last session was red, indicating a fall in
demand for the coin. Overall, the Polkadot price movement depends
heavily on its ability to break past the crucial resistance level
at $6.60. Technical Analysis At present, the bears have not gained
complete control over the Polkadot price. The Relative Strength
Index (RSI) indicates some optimism as it moves closer to the
half-line, suggesting that sellers have not outnumbered buyers
heavily. However, DOT is currently trading below the 20-Simple
Moving Average line, indicating that sellers are driving the market
momentum. Polkadot’s demand has been decreasing, leading to the
formation of a sell signal on the one-day chart. The Moving Average
Convergence Divergence (MACD), which measures the price momentum
and shift in trend, displayed red histograms associated with sell
signals, further indicating a potential downward trend for DOT.
Related Reading: Cardano Racks Up Nearly 4% Gain Amid Short-Term
Losses – Will Investors Hold Firm? In addition, the Parabolic SAR,
which measures the price direction and momentum, displayed dotted
lines above the candlesticks. This meant that DOT was showing
downward price action at the time of writing, indicating that the
sellers are currently in control of the market. Featured Image From
UnSplash, Charts From TradingView.com
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