Polkadot price analysis: DOT correct above $7 as selling pressure kicks inbit2main
The Polkadot price analysis indicates a slight decline in price levels as the price has now moved down to meet $7.12. The progress has been in the bearish direction, as the selling pressure is high above the $7 level.
The bears caused a sudden and major crash on 6 September 2022 when the ongoing bullish trend suddenly diverted, and the price oscillated downwards, causing a major deficit in price levels down to $6.86 level. Bull also showed a quick recovery up to $7.19 on 7 September, but they were unable to go above this level, and the selling pressure has appeared again, canceling out chances for further growth. The nearest support for DOT is present at $7.03, which seems to go under test soon as the price hasn’t found the support yet.
DOT/USD 1-day price chart: Bears cancel out further recovery
The Polkadot price analysis shows the bearish momentum is going strong for the one-day price chart, as the price levels are lowering every hour. The bears have been maintaining their lead quite efficiently; today, the trend has been in their favor again. The downtrend has resulted in the price value going down to $7.12, which is quite near the current support level, and the coin still reports an increase of 2.18 percent in value for the last seven days. Moreover, the Moving Average (MA) value has been maintained at $7.19.
The Bollinger bands underwent convergence, the volatility has decreased, and the upper value for the Bollinger bands is now $7.69, representing the resistance, while their lower value is situated at the $6.78 level representing the support. As the downward trending line is on the move, the Relative Strength Index (RSI) score has decreased to index 43 in the lower half of the neutral zone as well.
Polkadot price analysis: Recent developments and further technical indications
The 4-hour price chart for Polkadot price analysis is going unfavorable for the buyers, as the bears are continuously pulling the price levels down. More and more red candlesticks are appearing on the price chart as the selling activity is increasing. The price is now present at the $7.11 level; however, the deficit in price is not steep. The moving average is at a comparatively lower position as it is resting at $7.07. The average value of the Bollinger bands can be seen at $7.24 above the MA value.
The volatility was increasing previously, but now the upper band has started to diverge, which is why it is now situated at $7.74, and the lower Bollinger band has moved down to $6.75. The RSI score has decreased as well because of the downward trend, and it has reached index 45, indicating the selling pressure in the market.
Polkadot price analysis conclusion
The Polkadot price analysis confirms that a downtrend has been taking place for the past 12 hours. The bearish momentum is still in power, as the price has dropped down to $7.11 just recently. This regular decline has brought significant damage to the overall bullish price action. The support of $7.03 may also get retested if the downfall continues.
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