Polkadot price had touched the $8 price level before the bulls lost momentum and fell on the one-day chart. DOT is down 3.6% on its chart over the past 24 hours.
Over the past week, DOT had gained some value, but most of that had been wiped out at press time.
Polkadot price has been rallying for the past two days as it had previously fallen. Buyers stepped in during the recovery period.
At the time of writing, however, the buyers had left the market again. The technical outlook for the coin was bearish with sellers taking over the market.
The support zone for Polkadot price was between $6.16 and $5.52. A drop below $5.52 could take DOT below $5.
As Bitcoin’s bulls fizzled out in the market, most altcoins that were posting gains also began to lose their bullish momentum.
If demand for DOT increases on its chart, the coin may attempt to revisit its immediate resistance level. 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 one-day chart | Source: DOTUSD on TradingView
DOT was trading at $6.29 at the time of writing. The bulls struggled hard to defend the altcoin’s price at $8, but buying power declined, causing the altcoin to drop on its chart.
Polkadot price will see a hard price cap at the $6.80 level as the coin has had a few rejections at this level in the past.
A move above the $6.80 level will help DOT closer to the $7.73 price mark. On the upside, the local support level for the coin was $6.17 and a drop from this level would bring Polkadot close to the $5.52 level.
During the last trading session, the amount traded in Polkadot decreased, indicating a decreasing purchasing power.
Technical Analysis
Polkadot showed less buying power on the one-day chart | Source: DOTUSD on TradingView
DOT showed that there was a drop in purchasing power on the one-day chart. For most of this month, Polkadot price has faced increased selling pressure which has resulted in the bears eventually gaining strength.
The Relative Strength Index was below the half-line and that meant sellers were in power versus buyers in the market.
Polkadot was below the 20 SMA line, which can be interpreted as lower demand. It also meant that sellers were driving price momentum on the one-day chart.
Polkadot issued a sell-signal on the one-day chart | Source: DOTUSD on TradingView
DOT technical indicators showed that selling strength had taken over the chart. The Moving Average Convergence Divergence shows the price momentum and overall price action of the coin.
The MACD continued to show red signal bars, which were also a sell signal for the coin. Bollinger Bands measure price volatility and fluctuations in price.
The bands had widened as they reflected incoming price swings for the altcoin.
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