Polkadot Price Analysis: DOT/USD is bearish for the next

By November 23, 2021Polkadot
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  • Polkadot price analysis is bearish today.
  • DOT/USD is trading at $39.2.
  • Closest support at $38.

Polkadot‘s price is bearish today, as we witnessed an upside surge rejected quickly after. As a result, DOT/USD should continue to fall later today, most likely establishing another low. However, because this has happened so quickly, we can expect a retracement at some point, whether the pair goes higher or lower. This is because DOT/USD has likely hit resistance at $40.

Polkadot price movement in the last 24 hours: Polkadot rejects upside around $43, moves lower

Polkadot’s price action suggests that buyers are exhausted, as they have not come in for close to three days now. Also, notice no signs of bullish divergence before the upside surge on this 1-day chart. That could mean the bulls might be finished moving up soon. Alternatively, it could be another case of bearish divergence, making Polkadot’s price more vulnerable against drops.

It will still take some time before Polkadot manages to find support, though, as our next support level can be found at $38, followed by a major support zone from $32 to $27. All in all, though, we should be wary of an impending downtrend throughout the day, especially with yesterday’s rejection.

DOT/USD 4-hour chart: DOT set to test further downside?

On the 4-hour chart, we can see bearish momentum returning for the Polkadot price action, likely leading to more downside later today.

Weekly MACD – Moving Average Convergence Divergence is slightly bearish, but we may see a second bullish candle soon. The same goes for RSI: it’s just barely moving up after yesterday’s rise, indicating that bulls are still in charge. However, there could be another retracement at any moment now.

DOT/USD 4-hour chart. Source: TradingView

The price of Polkadot has been trading in a bearish manner for several weeks. After a new swing low was set at $55 on the 4th of November, the market could not go any higher.

On the 8th of November, a confirmed lower high was formed, followed by a sharp selloff on the 10th of November, resulting in the $43 level. There was one more drop on the 16th of November, taking DOT/USD to $38.

Following the price drop, Polkadot price action has seen consolidation sideways, with $43 as resistance and $38 as support. After a sharp rejection for upside overnight, DOT/USD is currently moving lower once more, likely setting up another test of the $38 support.

Polkadot Price Analysis: Conclusion

Today’s Polkadot price analysis is bearish, as we saw a rejection of upside overnight, resulting in another selloff. As a result, DOT/USD should continue to fall over the next 24 hours, most likely establishing a lower low near $38.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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