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Polkadot price analysis:Polkadot price not ready to challenge the $22 mark

TL;DR Breakdown

  • Polkadot price is expected to fall to $20
  • The closest support level is at $21
  • Polkadot price faces resistance at the $22 mark

After finally climbing past the $27.70 mark, Polkadot price failed to continue its bullish rally and the price has dropped to just below $21.50.While the price at press time holds just below $21.50mark the bearish pressure is very strong and the price may fall further in the immediate future if the selling continues.

The broader cryptocurrency market observes a bearish sentiment across the last 7 days with most major cryptocurrencies recording a loss across the timeframe. Main currencies which had a loss include Dogecoin, and BNB that record a -21.74 and a -12.63 percent decrease respectively. Meanwhile Bitcoin and Ethereum record a -9.57 and a -7.90 percent decrease respectively.

Technical indicators for DOT/USDT

Technical indicators for DOT/USDT by Trading view

Across the technical indicators, the MACD shows a declining bearish momentum. While the histogram is still red at the time of writing, the histogram’s size has decreased significantly as the indicator has started to climb back up and is now hovering over the -0.850 mark. While the 12-EMA still trades below the 26-EMA, the difference between the two is negligible and they may show a reversal at any time.

The RSI broke out of the overbought region on June 3rd and is now in the neutral zone. The indicator currently trades just above the 40.00mark and moves downwards suggesting a bearish presence at the current price level. However, the RSI trades with a low slope suggesting low bearish momentum as the buyers appear to be fighting back.

The Bollinger bands are currently wide but will converge rapidly in the immediate future as the bears take charge of the market momentum. The bands’ convergence suggests a drop in volatility for the Polkadot price in the short term. Moreover, as the price is consolidating below the bands’ mean line, the price will be leaning downwards for the next few candlesticks.

Overall the 4-hour technical analysis issues a sell signal with 13 of the total 26 major technical indicators suggesting their support for a bearish movement. On the other hand, only three indicators issue buy signals suggesting bullish momentum. Meanwhile, ten indicators sit on the fence issuing no support for either side of the market.

The 24-hour technical analysis shares this sentiment and also issues a sell signal with 14 of the 26 indicators suggesting a bearish movement against only two indicators suggest a bullish momentum. Meanwhile, ten indicators remain neutral and do not issue any signals at the time of writing.

What to expect from Polkadot price?

4 hour price chart by Trading view

Traders should expect Polkadot price to drop to $20 mark before having a bullish rally to challenge the $22 mark again.The short term indicators and the midterm indicators compliment this and suggest a bearish momentum which is likely to go on until Polkadot price is ready to jump back and make another attempt at the $22 mark. Traders can also expect Polkadot price to push towards the $25 mark again as well if bullish momentum continues.

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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