Crypto Technical Analysis

Polkadot Technical Analysis: Huge Drop in Volatility & Dominance, What’s Ahead for DOT Price?

Polkadot Technical Analysis

Key Takeaways:

  • The Polkadot(DOT) price closed the previous day’s trade at $7.0 with a market capitalization of $7.73 billion and a circulating supply of 1.11 billion DOT
  • The DOT price has dropped heavily below $10 which includes multiple failed attempts of a rebound 
Current Price $7.24
Market Cap $8.05 billion
Circulating Supply 1.11 billion
Total Supply 1.22 billion
Vol (24H) $304.32 million
Change (7D) -5.28%

Additional Read: Top Cryptos this Week

Polkadot Technical Analysis for September 2022

Polkadot appears to be bullish as the market sentiments are positive towards the DOT price as the price is attempting for a firm recovery. The market conditions appear to be favorable for the bulls as the price maintains a significant uptrend over the past couple of days. However, the asset may close the monthly trade on a bullish note as it clears the $7.31 resistance area. 

In the coming month, the DOT price may continue experiencing equal bullish & bearish pressure, compelling the price to consolidate above $8.5. If the asset receives an extensive bullish push, the price may even rise above $9.56 to hit $10. Therefore, by the end of the monthly trade, the price may hover around $10.

Technical Analysis at a Glance

The DOT price had dropped by more than 71% since the 2022 highs close to $24. Presently, the asset is carrying extensive influence of the bears but is holding the lower support at $6.86 firmly. Therefore, the upcoming trend is expected to be a coalition of a consolidated but slightly elevated trend until it reaches $10. 

Short-Term The DOT price is slowly rising to regain the lost levels but may soon face a minor rejection 
Mid-Term The asset has dropped heavily and currently consolidating along the lower support, which is poised to pull a significant leg up
Long-Term Polkadot is lacking the required buying pressure to rise above the current accumulation and hence may continue to consolidate 

Technical Indicators & Pivot Levels

Indicator Value (STF/HTF) Action (STF/HTF)
Relative Strength Index(RSI) 53.57 / 38.06 Neutral / Sell
MACD -0.007 / -2.69 Sell / Sell
Average Directional Index(ADX) 25.39 / 30.42 Buy / Neutral
Ultimate Oscillator 50.82 / 46.20 Neutral / Sell
Bull-Bear Power 0.162 / -2.38 Buy / Sell

Pivot Levels

Moving Average Short Term Long Term
MA 5 $6.11 $6.60
MA 10 $6.14 $6.36
MA 20 $6.06 $7.60
MA 50 $6.19 $15.59
MA 100 $6.69 $9.53
MA 200 $6.66 $4.76

Polkadot displays the probability of a short term bounce in the short-term as most of the indicators are either slightly bullish or neutral. The RSI is hovering within the average ranges while the bulls are well in the position. However, the MACD displays the rally being still under bearish captivity. 

Conversely, the asset may drop hard in the long term as most of the indicators are extremely bearish, pointing towards ‘sell’. Interestingly, the volatility is pretty less in both the time frames and hence the price movements may be slow & steadily. Regardless of the direction. 

Polkadot Crypto On Chain Metrics Analysis

  • Polkadot price ever since have inculcated a bearish outlook and has lost the market dominance significantly. The dominance that had reached above 2% during the Q4 2021 trade has dropped to -0.82% in recent times.

polkadot

Source: Santiment

  • The Polkadot crypto from the past 30 days has reduced the volatility to a large extent. Soon after the May market crash, the volatility spiked extremely high to reach beyond 1.60 levels. However, the recent crash has compelled to volatility rate to drop below 0 to hit -0.86 at the moment.

Polkadot

Source: Santiment

Polkadot (DOT) Technical Analysis for Short Term

polkadot

Source: Tradingview

  • Polkadot price faced a massive rejection, while it was on its way to slicing through the major resistance at $10
  • Since then the DOT price has dropped nearly 30% and is expected to drop more until the first few days of September
  • Further, a notable flip is expected to uplift the price from the bearish captivity and reach the immediate highs close to $8
  • However, before a breakout, the asset is primed to hit the lower support around $6.7 which may attract a catapult action towards the highs

Polkadot (DOT) Technical Analysis for Long-Term

polkadot

Source: Tradingview

  • The Polkadot price is swinging within. a descending parallel channel and interestingly consolidating within the middle ranges 
  • As the volume has reduced to a large extent, the probability of a firm rebound appears to be pretty less
  • Therefore, the DOT price is expected to continue consolidating within the average levels of the channel for some more time 
  • On the brighter side, the indicators are on the verge of flashing a bullish signal and hence the price may discard the bearish trend in the coming days

Where & How to Buy Polkadot(DOT)?

If you are in search of the best platform to buy Polkadot, then here it is, CoinDCX which is India’s most trusted crypto exchange, Along with buying, selling or trading your favorite asset, CoinDCX enables you to invest in easy weekly installments with Crypto Investment Plan. If your crypto investments are idle, you can make passive earnings with our newly launched CoinDCX Earn.

Therefore, download the CoinDCX App and register today!

FAQs

Is Polkadot bullish or bearish?

Polkadot price is pretty bullish in a small time frame but extremely bearish in the longer time frame. Check latest Polkadot INR Price - https://coindcx.com/trade/DOTINR

What is the current RSI for DOT?

The RSI presently in the short term is 52.83 in short term while in long term it is 32.97

Is it a good time to buy Polkadot?

As mentioned above, DOT price is preparing for a huge bull run and hence could be good time to buy

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