Polkadot price analysis continues to show bearish reading as price fails to recover from the distinct decline initiated on November 8. DOT dropped down to a 52-week low of $5.36 over the past 24 hours, as the downward descent deepened to strengthen the bearish outlook. DOT price was extending high at $7.42 just at the start of November, but faced rejection around the mark and corrected heavily. Polkadot bulls would have to conjure up significant momentum from this point to reach above the $6.40 resistance. This could still be a likely scenario as the market reached an oversold zone where another negative move could be unlikely.
The larger cryptocurrency market mimicked Polkadot’s decline, led by Bitcoin’s descent down to $16,000. Ethereum followed suit, incurring a 6 percent downtrend to stay just above the $1,000 mark. Among Altcoins, Dogecoin dropped 8 percent to move down to $0.07, whereas Ripple lost 5 percent to $0.36. Meanwhile, Cardano dropped 5 percent to move as low as $0.51, similar to Solana’s demise down to $12.31.
Polkadot price analysis: DOT stays behind moving averages on daily chart
On the 24-hour candlestick chart for Polkadot price analysis, price can be seen forming an extended downward triangle. DOT has failed to recover from a decline that started on November 8. Since then, price has lost more than 25 percent, with a further 3 percent decline over the past 24 hours. However, trading volume picked up over 47 percent over the past 24 hours, indicating some buying action as buyers come into the market at discounted price.
The expected buying momentum will have to push price up to the $6.17 resistance to move above the 9 and 21-day moving averages. DOT currently sits below the crucial 50-day exponential moving average (EMA) $5.68. The 24-hour relative strength index (RSI) sits in an oversold region at 35.73 and is expected to move upwards if it falls down to the 30-mark. The moving average convergence divergence (MACD) curve can also be seen continuing along a bearish divergence that crossed the neutral zone to turn bearish on November 9.
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