Looking at the daily trading chart of DOT/USDT, Polkadot (DOT) is in a downtrend since November 2021. Following reaching its highest price of $55, the token has been forming a descending channel. After breaking out of the first support zone of $18-$14, its price continues to drop and is now reaching the second support zone.
DOT/USDT 1H Chart (Source: TradingView)
The relative strength index (RSI) measures the relative momentum in the magnitude of recent price changes to deduce oversold or overbought assets. The RSI value of the daily chart is 33.48 after a reversal from 12.16. This shows that DOT has been oversold and now slightly tends to form an uptrend.
As seen in the daily trading chart above, the buying pressure around the support line hasn’t broken the selling momentum yet. Although the price is having multiple retests to the support line, it’s still under the 200 EMA line in both 1H and 4H charts. If the bearish chart pattern tends to break out of the current support zone, the traders can find an opportunity to short.
By seeing that traders and investors put a buying order block at $6.3, the price may come for a reversal for a short period. But if it cannot break the descending channel from May to June 2022 for a bullish run, the price will continue to drop deeper into the bearish market.
According to CoinMarketCap, Polkadot seems to have regained interest from traders as its trading volume increased up to 30.05% within 24 hours. Having the market presence of the top 12, its price stands at $6.49, with a 24-hour increase in price change of 1.41%.
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Source: Cryptocurrency - investing.com
