Polkadot price analysis: DOT struggles at $7 as the market turns bearish

By September 1, 2022Polkadot
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Polkadot price analysis: DOT struggles at $7 as the market turns bearish

The Polkadot price analysis indicates a bearish trend as selling pressure still persists in the market. The market followed the bullish trend yesterday, but the value gained during this time was minimal, and the selling pressure returned. Bulls are striving to maintain the price above the $7 level as this seems to be the support floor for DOT/USD. Support is present at $6.70, and if the support persists, then it may help bulls in maintaining the price levels above the support.

DOT/USD 1-day price chart: DOT reports a 3.28 percent loss overnight

The 1-day price chart for Polkadot price analysis shows bears are defining the price curve today. The DOT/USD was corrected after a slight bullish price movement yesterday. DOT/USD pair is trading hands at $7.01 at the time of writing. The past week overall proved detrimental for the crypto pair as it lost around 7.28 percent value over this time. And today, the selling pressure has returned, and the trend is the same as the bears are defining the price function by bringing the price down, and another 3.28 percent loss has been recorded over the last 24 hours.

DOT 1g
DOT/USD 1-day price chart. Source: TradingView

The moving average (MA) is standing at $7.14 above the price level. The volatility for DOT/USD is on the higher side, but the Bollinger bands are now diverging, with the Upper band at $9.17 representing resistance for DOT, and the lower band at $6.19 representing support for the cryptocurrency, making an average at $7.68. The relative strength index (RSI) is also confirming the sluggish bearish price movement for today as it is on a very slight downward curve at index 40, almost hovering near the same score.

Polkadot price analysis: Recent developments and further technical indications

The 4-hour price chart for Polkadot price analysis shows that bears are striving for the lead and have caused some damage to the overall price value, but at the same time, the bulls have dodged the bearish pressure as support has appeared and the price function is headed up once again. However, the larger trend is still bearish and may remain bearish for the coming hours.

DOT 4hd
DOT/USD 4-hours price chart. Source: TradingView

The Bollinger Bands on the 4-hour chart have been keeping their average at $7.11, which is higher than the current price level, whilst the upper band is at $7.35, and the lower band is at the $6.87 mark. The RSI, after falling down, has started to recover at index 43, as the curve is slowly turning upwards as the buying activity resumes in the market.

Polkadot price analysis conclusion

The Polkadot price analysis shows that the coin is correcting today and may continue to follow a downtrend for today as the broader market is bearish as well. The support present at $6.70 is strong enough to keep the crypto afloat above, but if the support falters, then DOT/USD may roll down towards the $6.50 level; however, chances are less for such a low price.

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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