Crypto analysis

Crypto analysis: Polkadot (DOT) continuing downward trend raises concerns

February 17, 2024

Polkadot (DOT) chart analysis:

Polkadot (DOT) chart analysis

Polkadot (DOT) has been experiencing a notable downturn in its price, with the current value resting at $7.58 USD as of 2:49 PM PST. Over the past 24 hours, the cryptocurrency has seen a decrease of 2.89%, contributing to its ongoing downward trend. This trend is further evident when examining its performance over longer periods, with a 7-day change of -7.50%, a 30-day change of -9.06%, and a staggering 1-year change of -79.20%. These figures reflect a concerning trajectory for investors and traders alike.

Despite a slight upward tick in the last hour, DOT remains significantly below its all-time high of $54.98 USD, which was recorded on November 4, 2021. This vast disparity raises questions about the cryptocurrency's ability to regain momentum and stabilize its value in the near future. Moreover, the decrease in trading volume compared to previous days suggests a decrease in market activity, indicating waning investor confidence and participation.

Polkadot (DOT) price analysis:

The price of Polkadot (DOT) is bouncing back strongly, forming a shape like the letter 'V'. This recovery happened after it hit a strong level where a lot of buying and selling happened, called an "order block". A crypto trader and analyst named Rekt Capital says this bounce back is a "successful retest".

Polkadot (DOT) price analysis

There's a chance that the price of DOT could go up by 15% more and reach a previous high point of $8.6090. This prediction is based on some positive signs in the charts that show the market might still have room to go higher. For example, the Relative Strength Index (RSI), which measures if something is overbought or oversold, is at 60, suggesting there's still room for DOT to go up before it's considered too expensive.

Another indicator called the Moving Average Convergence Divergence (MACD) also shows that the buyers are still strong in the market, even though it's currently in negative territory.

If everything goes really well and the market stays super positive, Polkadot's price might even reach a psychological level of $9.0000.

But if traders decide to take their profits after the recent gains, the price of Polkadot could drop. If it breaks a specific price level of $6.6010 and stays below it, it could confirm that the downtrend will continue.

In a really bad scenario, the price of Polkadot could fall all the way down to $6.0000. This would mean a 20% drop from where it is now.

Polkadot's recent price activity highlights the challenges facing the cryptocurrency as it continues to grapple with a persistent downward trend. While short-term fluctuations may offer temporary relief, the overarching trajectory warrants careful observation and consideration from stakeholders in the digital asset space.