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- 1 Polkadot price action looks bearish, depicting a downtrend on the chart.
- 2 Vital technical indicators are suggesting a volatile trend ahead.
The Polkadot (DOT) crypto price has reached the demand zone of $6 and a significant pullback was witnessed this week. Nonetheless, the trend is still negative and the buyers have much more to do to revert the gains.
This week, the DOT crypto has gained momentum and retested the 200 day EMA mark. Meanwhile, buyers still stayed on the backfoot and sellers looked strong and maintained their grip near $8.
At press time, the Polkadot crypto (DOT) price traded at $7.18 with an intraday gain of 1.76%, reflecting mixed cues and staying in the bearish region. It has a monthly return ratio of -15.20% and 30.25% yearly.
The pair of DOT/BTC is at 0.000112 BTC, and the market cap is $10.14 Billion. Analysts are neutral and suggest that the DOT crypto may hover around the 200 day EMA mark and will head toward the $10 mark soon.
Can Polkadot (DOT) Crypto Outperform This May?
The price to volume profile of the Polkadot crypto reflects a mixed outlook and is trading in the bearish region. Until the DOT crypto crosses the 100 day EMA mark, the trend is bearish and further downside risk remains intact.
Source: Santiment
Over the past few sessions, the trading volume remained lower and the DOT crypto price hovers in a range, where bulls are attempting to cross the $8 mark. Amidst the recovery from the demand zone, sellers have an edge.
Will The Correction Extend Amid Negative Sentiment
Per the Santiment data, the weighted sentiment data sharply declined over 4.78% and dropped to the downside mark of -1.237, implying a negative outlook. Meanwhile, the technicals favor the bear cartel while sellers have persisted in showcasing their dominance.
Source: Santiment
The price volatility curve showcased sharp movements and is displaying fear among the investors. The curve witnessed a drop over 1.38% to 0.019. However, the buyers are trying their best to secure the prompt support mark of $6.
A break and close above the $8 mark may trigger the pullback and short covering will be seen ahead.
DOT’s market capitalization has dropped by 0.22%, reaching $10.19 billion and ranking it 17 in market cap listings. The total supply was noted at 1.44 Billion and the volume to market cap ratio is 0.0240.
Per the Fibonacci retracement levels, the DOT price is hovering near the 23.6% support zone, and is below the mid bollinger band.
Conclusion
The Polkadot crypto (DOT) price headed to the 200 day EMA mark, signifying a rebound this week. However, the DOT crypto is still looking bearish and the buyers still have a challenge to retain the $8 mark.
Technical Levels
Support Levels: $12 and $11.80
Resistance Levels: $13.90 and $14.70
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
