Polkadot is a blockchain network that facilitates interoperability and cross-chain transfers. It has high transactional scalability as it can process numerous transactions in multiple blockchains simultaneously. It is a fast, robust, tamper-proof, and fork-resistant platform for the development of innovative decentralized applications. DOT is the native token of this network and the technical analysis is as follows:
On May 7, 2021, DOT started trading at $41.58. On May 13, 2021, DOT closed at $39.99. Thus, in the past week, the DOT price has decreased by roughly 4%. In the past 24 hours, DOT has traded between $39.70-$41.87.
Day-Ahead and Tomorrow
Currently, DOT is trading at $40.17. The price has increased from the day’s opening price of $39.98. Thus, the market seems to be healthy.
The MACD and signal lines have turned negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, we can expect the price to start falling.
Currently, the RSI indicator is at 45%. It has faced rejection at 47% and fallen to the current level. Thus, selling pressures are high. Hence, the price is likely to drop further.
The OBV indicator has fallen steeply too. This implies that selling volumes are much higher than buying volumes. Heavy offloading activity will exert downward pressure on the DOT price. In a nutshell, all three indicators have given bearish signals. Thus, the price is likely to start declining.
DOT Technical Analysis
The price has currently fallen below the Fibonacci pivot point of $40.52. By the end of the day, the price may fall below the three support levels of $39.69, $39.17, and $38.35, respectively.
The price has tested and fallen below the 23.6% FIB retracement level of $40.21. It may soon fall below the 23.6% FIB extension level of $39.17. Thus, the bears are strong, and the price downtrend is likely to continue tomorrow as well.