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Polkadot (DOT) Formed Bearish Engulfing Candle; Suggesting More Declines

Polkadot price suffered a sharp plummet since the previous week as the broad crypto space note escalated declines at this publication.

Bitcoin could not reclaim the $30K mark, trading with a bearish bias at $29,886. The altcoin market mimicked BTC’s downtrend, recording losses on their respective daily charts. Though DOT attempted recoveries on the charts, Polkadot traded within a descending trend-line. Meanwhile, the uptick can fade anytime if buyers fail to join the market.

The alternative token traded near its closest support barrier of $8.04. DOT last hovered around this value area in July last year. Meanwhile, Polkadot presented range-bound rallies over the past four months. Also, the token remained constricted inside $24 – $16 within the past 17 weeks. Though DOT kick-started a revival, it might be early to conclude whether it will maintain northbound.

Polkadot 1-Day Chart

While publishing this content, DOT traded at $11.06, surging 5.52% over the past day. The alt remained 18% lower within the previous week (Coinmarketcap data). Though the uptick placed it beyond the nearest resistance at $10.80, Polkadot remains weak and susceptible to downtrends. For now, the coin can target $13.23, but only a decisive close beyond $14 will cancel the bearish outlook.

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The altcoin formed multiple bearish engulfing candles on its 1-day chart. These candlesticks show bearish price moves onset and continuation of such actions. Meanwhile, steadying beyond the $13.23 value area would bolster price reversals. That could see Polkadot eying the resistance at $16.06, then $17.46. Moreover, the token’s trading volume flashed green, showing a possible price direction shift.

Technical Analysis

Polkadot saw oversold conditions within the previous days but buying momentum started emerging. The daily chart Relative Strength index recorded an upswing. The indicator climbed beyond the oversold region as buyers stepped into the market.

However, buying momentum remains low as sellers dominate the marketplace despite the latest uptick. The DMI shows price momentum within the space. This indicator signaled bearishness as the –DI stayed beyond the +D1.

Meanwhile, the token tried recoveries on the chart. For instance, the Chaikin Money Flow registered an upswing, suggesting capital inflows surpass outflows. On the other side, the Awesome Oscillator presented red histograms beneath the half-line, highlighting a negative direction for DOT.

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James Carr (Australia)

James is a new research writer for Tokenhell. His articles include broker and exchange reviews, guides and news from all over the crypto-verse. Stay tuned for his recent articles.

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