Polkadot (DOT) Price Slumps Below $6 – Any Chances For Reversal?
April 22 2023 - 10:43PM
NEWSBTC
The price of Polkadot (DOT) has been gradually moving south over
the past few days. The price decline cuts across the entire crypto
market, with strong signs of bears. The cumulative market cap has
dropped by 2.58% to sit at $1.25 trillion in 24 hours. Related
Reading: OKB Token Shines With 23% Gains On Weekly Chart, What’s
Pushing It? DOT has finally lost its grip on the $6 region as the
bears became aggressive on the token over the past 24 hours. The
market is wondering if Polkadot still has a chance to reverse the
downtrend. Polkadot Price Drops Drastically With Prevailing Bearish
Trend The past few days seem to be turning out more
negatively for DOT. The asset hovered between $6.1 and $6.9 last
week except on April 21, when it dipped. Currently, the
60-day and 90-day price action for Polkadot shows negative values
of 4.45% and 5.36%, respectively. Also, DOT dipped by 12.46% over
the past 7 days. Related Reading: These Top 5 Cryptos Are Thriving
Despite A Slippery Market After losing its hold on the price level
of $7 in February, DOT has maintained a trading price within the $6
region. As of April 21, the price of DOT dropped to its resistance
point of $5.8 before correcting. However, the price analysis
of DOT for the past 24 hours shows the token is gradually going
down again within the past few hours. At the time of writing,
DOT is trading at $5.921, indicating a slight reversal after
plunging. The bearish push on DOT from the past few days has
spilled over to the weekend. The crypto market is undergoing a
bearish trend, with most crypto assets battling for price
stability. Polkadot is included in the market performance. Hence,
the selling pressure for the token has exceeded its buying
pressure, forcing the price of DOT below the $6 region. Bears Push
DOT Below $6 After three consecutive red days, DOT has formed a
green candle on the price chart. However, the bears are still in
control as they struggle to reclaim past price levels. DOT
has dropped below its 50-day and 200-day Simple Moving Averages
(SMA), indicating a bearish sentiment in the short and long term.
DOT’s support levels are $5.15 and $5.75. A decline below its
support will bring further price fall. Also, the resistance levels
are $6.71 and $7.89. However, the $6 price level has transformed
into a psychological resistance level. The Relative Strength Index
(RSI) indicator is 39.74, close to the oversold region of 30.
However, the indicator points upwards, suggesting a bullish
reversal in the short term. DOT’s indicators are mostly bearish.
Its next price action depends on traders’ decisions in the coming
weeks. Further drop into the oversold region will likely lead to a
trend reversal at the $5.75 support level. Featured image from
Pixabay and chart from Tradingview
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