Polkadot’s price had touched the $8 price level before the bulls lost steam and fell on the one-day chart. DOT is down 3.6% in the past 24 hours on its chart.

Over the past week, the DOT has gained in value, but most of it has been canceled as of press time.

Polkadot price has rallied over the past couple of days as it was down earlier. The buyers had intervened during the recovery period.

As of this writing, however, buyers have exited the market again. The technical outlook for the coin was bearish as sellers took control of the market.

The support zone for the Polkadot price was between $6.16 and $5.52. A drop below the $5.52 mark could cause DOT to drop below the $5 mark.

As Bitcoin bulls crashed into the market, most altcoins that saw gains also began to lose their bullish momentum.

If the demand for DOT increases on its chart, the coin may attempt to revisit its immediate resistance mark. If purchasing power continues to decline, DOT will return to its local price support line.

Polkadot Price Analysis: One Day Chart

Polkadot was priced at $6.29 on the 1-day chart | Source: DOTUSD on TradingView

DOT was trading at $6.29 at the time of writing. The bulls tried hard to defend the altcoin price at $8, but the buying strength dropped and this sent the altcoin down its chart.

Polkadot price will experience a difficult price cap at $6.80 as the coin has been rejected at this level several times in the past.

Breaking above the $6.80 level will help DOT move closer to the $7.73 price mark. On the other hand, the local support level for the coin stood at $6.17 and a drop from this mark would push Polkadot close to the $5.52 level.

During the last trading session, the amount of Polkadot traded dropped, signaling a decline in buying strength.

Technical analysis

Polka Dot Price
Polkadot represented lesser buying strength on the one-day chart | Source: DOTUSD on TradingView

The DOT was showing that there was a decline in buying strength on the daily chart. For most of this month, Polkadot price witnessed increased selling pressure, which eventually allowed the bears to gain strength.

The relative strength index was below the half line, which meant that sellers were outstripping buyers in the market.

Polkadot was below the 20-SMA line, and this can be interpreted as less demand. It also meant that the sellers were driving the price momentum on the daily chart.

Polka Dot Price
Polkadot represented the sell signal on the one-day chart | Source: DOTUSD on TradingView

DOT technical indicators showed that the selling force had taken over the chart. Moving Average Convergence Divergence indicates the price momentum and overall price action of the coin.

The MACD continued to show red signal bars, which was also a sell signal for the coin. Bollinger bands measure volatility and price fluctuation.

The bands had widened as they reflected incoming price swings for the altcoin.

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