TL;DR Breakdown
Polkadot price experienced a minor pullback on the intra-day marketPrice fell from $37.18 yesterday, after failing to retest the 70.5% Fibonacci levelA further pullback towards $30.14 remains likely
Polkadot price analysis for the day shows a minor retracement in price that confirmed the failure in testing $38.30 resistance at the 70.5% Fibonacci retracement level. Price dropped from $37.18 yesterday, and has fallen as low as $32.04 in the current trading session. The current pullback could take DOT price as low as $30.14, but would eventually open doors towards an all-time high of $50. Investors will look to collect liquidity off of the current decline and then initiate a push upwards. Currently, DOT is trading between the range of $32.04 to $34.44.
The larger cryptocurrency market showed signs of declines similar to DOT’s, led by Bitcoin’s 3 percent retracement. Ethereum also fell below $3,500, with Altcoins exhibiting mixed results. Dogecoin continued its descent from yesterday, falling further to $0.22. Cardano also fell a single percentage, along with Ripple’s 2 percent decline to sit at $1.09. Solana was the biggest winner in the market, moving up 8 percent to $152.49.
Polkadot price analysis: Cryptocurrency heat map. Source: Coin360
DOT/USD 24-hour chart: Evening Star pattern shows change in trend
On the 24-hour chart, the change in trend is confirmed by an Evening Star pattern, that indicates the retestment faced by Polkadot. Price started to decline from $36.84 on October 10, and has gone as low as $32.00 in the current trading session, taking it below the 20-day Exponential Moving Average. The Relative Strength Index (RSI) still presents a relatively healthy reading of 56.69, suggesting there is still positive momentum in the current trend. The next few daily trade sessions will determine the extent of the foreseen decline, and if it would take DOT closer to support at $28.69.
Polkadot price analysis: 24-hour chart. Source: Trading View
DOT/USD 4-hour chart: RSI drops to 50 with further decline in sight
On the 4-hour chart, price can be seen upping slightly, but with a decreasing RSI value of 50.86. Price sits just above the 20-day EMA and between the middle and bottom Bollinger Bands’ curves. It suggests that price movement could go either way over the next few trading sessions. However, a declining trading volume all but confirms seller domination in the market for DOT, putting it in prime for a further decline.
Polkadot price analysis: 4-hour chart. Source: Trading View
Polkadot price analysis: Conclusion
In conclusion, Polkadot price analysis can be taken as a precarious call for a decline in sight for the token. While technical indicators are not yet entirely ripe for a major retestment, early signs seem to be in favour of a pullback. If price is pushed towards the support level at $28.69, Polkadot will be able to target a strong comeback to the $50 mark over the next trend as liquidity gathers in the market. Any movement below $30.09 would invalidate the bullish thesis.
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