Polkadot price analysis: DOT breaks support trendline, further downside to $13.5 overnight?

TL;DR Breakdown

• DOT set a lower high overnight.
• Several-day support trendline broken.
• Bears target the $13.5 mark next.

Polkadot price analysis is bearish as the market failed to breach the $17 mark yesterday and started moving lower again. Over the past hours, DOT/USD broke below the several-week ascending support trendline, which will likely result in further downside over the next 24 hours.

The overall cryptocurrency market trades in the red over the last 24 hours. Bitcoin has lost 5.3 percent while Ethereum 4.58 percent. Rest of the altcoin market trades with a similar loss of 5-6 percent.

Polkadot price movement in the last 24 hours

DOT/USD traded in a range of $14.79 – $16.58, indicating a moderate amount of volatility. Trading volume has increased by 16.88 percent and totals $812.7 billion. Meanwhile, the total market cap stands at around $14.3 billion, ranking cryptocurrency in 9th place.

DOT/USD 4-hour chart – DOT spikes below the support trendline

On the 4-hour chart, we can see the Polkadot price reversing again after failing to set a higher high overnight.

The overall Polkadot price action still trades in a bearish price action structure. After retracing by more than 50 percent from the $26 high, DOT/USD retested the previous major low of around $13.5. 

From the $13.5 support, DOT/USD attempted to regain some of the loss. However, the $17 price level could not be broken last week. Yesterday Polkadot set a higher low around $16.5 as the 100 period moving average blue line was retested. From there, DOT/USD moved lower over the past hours and set a slightly lower low.

Therefore, Polkadot will likely reverse back to the downside later this week and attempt to finally breach the $13.5 support. Alternatively, the market will continue moving sideways to build support to move higher over the following weeks. 

Polkadot Price Analysis: Conclusion 

Polkadot price analysis indicates bearish market sentiment for the upcoming week. After failing to set a higher high overnight, the market retraced lower, reached the previous swing low, and broke below the ascending support trendline. Overall this price action development should lead DOT/USD towards a lot more downside later this week, with the $13.5 mark targeted next.

While waiting for Polkadot to move lower, read our guides on DeFi advantages, Bitcoin fees, as well as what you can buy with Bitcoin.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/polkadot-price-analysis-2021-07-05/