Will the Bear Continue to Dominate DOT Coin Price in the Future?

• The DOT coin has declined by 3.84% after it faced an immediate rejection from $4.720.
• The long/short ratio of the coin indicates the higher short positions in the last 24 hours.

Polkadot is an open-source sharded multichain protocol blockchain designed to perform secured transactions without the interference of third parties. It also provides the foundation of a decentralized internet of Blockchain which is also known as Web3.

Polkadot (DOT) Coin Price Analysis

The DOT coin price is currently trading at $4.128 and is up by 0.07% in the last 24 hours. The current market capital of the coin is 5,085,423,262 USD and has traded with a volume of $582.595K in the last 24 hours. It has a circulating supply of 1,230,170,141 DOT coins.

What Going On 1-Day Chart of Dot Coin

While monitoring the chart, the price has recently given the breakout of the falling wedge pattern. However, it faced immediate rejection from the $4.270 level and is sustaining below it. The price has faced a decline of 3.84% after facing resistance from the $4.270 level. The price can also be observed consolidating in a range of $4.270 to $3.895.

The DOT price has also faced rejection from the 50 EMA and has formed a bearish candle. This shows that the sellers are still in control of the price despite the breakout of the falling wedge pattern.

The RSI is in neutral territory. It indicates the price is currently facing pressure from the buyers as well as sellers. 

The current overview of the chart shows that there was an ongoing bullish rally from the $3.895 support. It gave the breakout of the falling wedge pattern. However, the bullish rally ended up facing rejection from the $4.720 resistance, which made the price form a bearish candle. The sellers are trying to reserve the short-term bullish rally initiated from the $3.895.

If the sellers made the price fall and gave the breakdown of the $3.895 support, the price could fall to its next support at $3.500. It will lead the breakout to convert into a fakeout. However, for the price to continue its bullish trend it must close above the $4.270 resistance and should sustain above it.

Conclusion

The DOT coin chart is indecisive at the time of writing. However, the price has given the breakout of the falling wedge pattern, the EMA is pointing toward the fall in price. The RSI is in neutral territory. 

Traders should wait for the confirmation of the future trend. If the price breaks above $4.270, it will continue its short-term bullish rally to the $4.805 level. However, for the price to continue its bearish trend, it should close below $3.895. It could fall to its next support at $3.500.

Technical levels

Resistance Levels: $4.720 and $4.805.

Support Levels: $3.895 and $3.500.

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only. They do not provide financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.