The current state of Polkadot (DOT) is not looking so bright, as the cryptocurrency is facing a significant decline. This downward trend is being fueled by a combination of factors such as market-wide volatility, negative investor sentiment, and regulatory pressures. As the price of DOT continues to drop, investors are advised to be cautious and reevaluate their strategies in light of these bearish signals.
Looking at the 4-hour chart, we can see that DOT did a retracement after breaking from a previous bearish triangle wedge. However, the price started dropping again shortly after. Despite the current attempt to move up, the reality is that it will likely continue to drop. The formation of the 4-hour Composite Trend Oscillator further supports this idea, indicating that the price of DOT may still have room to drop as the signal line and Simple Moving Average (SMA) are trending close to the oversold zone.
On the 1-day chart, DOT is showing signs of a bullish move below the 100-day SMA after a bearish candlestick formation on the past day. This suggests that the bullish move might be short-term in nature. Additionally, the 1-day Composite Trend Oscillator on the daily chart signals that DOT’s price is actively bearish, with both the signal line and SMA crossing below the zero line and heading towards the oversold zone.
Polkadot is currently facing a challenging situation with a sharp and sustained decline, triggering a bearish alert. If the price continues to drop, it might test the $4.809 support level. Breaking below this level could lead to further drops, potentially reaching the $3.542 support level and other key levels afterward. On the other hand, if DOT manages to move upwards, it might head towards the $7.701 resistance level. Breaking above this level could result in a bullish momentum towards the $9.805 level and beyond.
As of the time of writing, Polkadot (DOT) was trading at around $6.23, down by 2.58%. Its market capitalization stood at over $8.9 billion, with a 24-hour trading volume exceeding $204 million. While the market capitalization has decreased by 2.52%, the trading volume has seen a significant increase of 19.08% in the past day.
Overall, the bearish trend that Polkadot is experiencing is a cause for concern among investors. It is essential to closely monitor the technical indicators and price movements to make informed decisions regarding investments in DOT. As the cryptocurrency market continues to be highly volatile, it is crucial to stay updated with the latest developments and adjust strategies accordingly to navigate through these uncertain times.