DOT Technical Analysis: Polkadot Trades Bearishly on the Short-Term Basis
Table of contents
Key Technical Points:
Past Performance of DOT
With the sell-off driving DOT market value down to $6.62, the cryptocurrency is down by over 4% in the last 24 hours. However, it is still up by over 50% since the beginning of the month. The past performance of DOT is a good indicator of how the cryptocurrency might perform in the future.
Source- Tradingview
DOT Technical Analysis
The 4-hour chart shows that the DOT/USD trades below the 20-day moving average (MA) and the 50-day MA. This suggests that the bearish trend will likely continue in the short term. The RSI is currently at 42, which indicates that the market is neither oversold nor overbought.
The market value is likely to continue falling as the sell-off continues. However, the cryptocurrency might find strong support below $6.0. Once the market value stabilizes, it will likely consolidate in a sideways range before beginning an upward trend. The MACD and signal lines display a bearish crossover, which is another indication that the market value is likely to fall in the short term. In summary, the DOT/USD pair is bearish in the short term.
Upcoming Trend
If the market value of DOT breaks below $6.0, it will likely fall to $5.50 in the short term. On the other hand, if the market value rises above $7.0, it is likely to rise to $7.50 in the short term.