Polkadot bears may drag its price down despite bullish signs

By December 9, 2022Polkadot
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Polkadot bears may drag its price down despite bullish signs

Polkadot price has attempted to overcome its immediate resistance several times during the first week of December. Despite this, the bulls could not build on their own strength. This shows that the purchasing power of the coin remains low at higher price levels for altcoins.

The technical outlook of the coin reflected a decline in demand. The accumulation for Polkadot has been quite low for the entire month of November and the first few weeks of December. DOT is up 2% in the last 24 hours, but it does not reflect bullishness on the intraday chart.

Polkadot price has to trade above the $5.71 mark to target $6. The $5.71 price resistance has been a strong hurdle for the coin. Broader market strength and a push from buyers can only help altcoins head north. Polkadot market capitalization has also declined, indicating that bearish forces remain.

Polkadot Price Analysis: Intraday Chart

As of press time DOT was trading at $5.30. Although the coin crossed the $5 mark, the bears could drag the price down to $4.30. Immediate resistance for Polkadot lies at $5.71, breaking which could give DOT a shot at $6.

On the other hand, the first line of support was at $4.50, falling through which the coin would rest at $4 if DOT does not lose momentum, which seems unlikely given the low demand for altcoins. A bounce from the $5 mark could help Polkadot move above the $5.70 mark.

A drop to the $5.70 level would give DOT a chance to rally to $6.21. Polkadot traded lower in the last session, which means bearish on the charts.

technical analysis

DOT indicates that buyers have lost interest in the altcoin. The Relative Strength Index (RSI) fell near the 40-mark, meaning that there was little buying strength compared to buying strength on the charts.

Polkadot price tried to break above the 20-simple moving average (SMA) line several times in the past few weeks. Despite this, the bulls lost steam. At the moment, Polkadot’s price was below the 20-SMA line, indicating low demand and that sellers were driving the price movement in the market.

Other technicals also point towards negative price action. The Directional Movement Index was negative, as the -DI (orange) line was above the +DI (blue) line. The Average Directional Index (red) indicates the strength of the price momentum; It was above the 20 mark but has seen a decline.

This downtick indicated a decrease in the strength of the price action. Bollinger Bands depict the ups and downs of prices. The bands were constricting, indicating range-bound movement and low volatility for the altcoin.

source: newsbtc.com

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