Polkadot price analysis: DOT declines below $9.01 after extended horizontal trend

Polkadot price analysis is highly bearish today, as price began a fresh downward descent after continuing along a horizontal pattern since June 3, 2022. DOT price faced continued rejection below the $10 mark and declined more than 4 percent over the past 24 hours to reach as low as $8.94. The bearish outlook over the current downward trend may push price as low as $7.62 over the coming trading sessions as traders move out of a stagnating market. Trading volume over today’s trade grew more than 6 percent with further selling pressure in line. The resistance for DOT price is set at $10.67 while buyers may come into the market again around the $8.57 price mark.

The larger cryptocurrency market showed declines similar to that of DOT, as Bitcoin downed another 3 percent to move back down to $30,000. Ethereum declined 3 percent as well, to move down to $1,800. Meanwhile, leading Altcoins also showed bearish signs across the board, as Ripple dropped 3 percent to $0.40, similar to Dogecoin’s move down to $0.08. Solana shed 4 percent to drop down to $39.03, the same as Polkadot’s move down to $9.03. Cardano posed the sole upward exception in the Altcoin market, ascending 2 percent up to $0.64.

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Polkadot price analysis: Cryptocurrency heat map. Source: Coin360

Polkadot price analysis: Market valuation dips into oversold region on 24 hour chart

On the 24-hour candlestick chart for Polkadot price analysis, price can be seen forming a new downtrend below the $9.14 mark after moving along a rectangular pattern over the past week. Buyer and seller pressure can be seen to be similar over the past few daily candlesticks, however, seller pressure succeeded in pushing price down over the past 24 hours. The 4 percent decline in DOT price was accompanied by an increasing trading volume, which shows market valuation for the token to be on the downside. This is also reflected over the 24-hour relative strength index (RSI) that can be seen taking a steep descent into the oversold region at 38.47.

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Polkadot price analysis: 24-hour chart. Source: Trading View

Moreover, the downward price action over today’s trade took DOT price below the 20 and 50-day exponential moving averages, where seller pressure is seen to be shifting price trend. The moving average convergence divergence (MACD) is forming lower lows and is expected to undergo a bearish divergence below the neutral zone over the next 24-48 hours. The downward price cap is at $8.57, where buyers may apply some pressure to move up to current price. However, price could be headed to the $7.62 mark if the downtrend deepens.

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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