Polkadot price analysis: Polkadot spikes lower, retracement to $22 today?

TL;DR Breakdown

• DOT retraced from $26 yesterday.
• Bears in control overnight.
• Support area around $22-$22.75

Polkadot price analysis is bearish as the market retraces from the $26 high over the last 24 hours and has not yet found support. Therefore, we expect DOT to move to $22 area letr today, where 61.8 Fibonacci retracement level is found.

The overall crypto market trades in the red over the last 24 hours. Bitcoin is down by 3.22 percent, while Ethereum by 5.69 percent. Rest of the market follows this pattern of around 5 percent loss.

Polkadot price movement in the last 24 hours

DOT/USD traded in a range of $22.86 – $24.79, indicating a moderate amount of volatility. Trading volume has decreased by 45 percent and totals $1.753 billion. The total market cap stands at 5.92 percent, ranking the cryptocurrency in 9th place overall.

DOT/USD 4-hour chart – DOT spikes lower

On the 4-hour chart, we can see the Polkadot price moving lower over the past hours to reach the 50-61.8 Fibonacci retracement area.

The overall market trades with a bullish sentiment over the past days after a strong higher high at $26 was set on Monday. This comes after a week long retracement from the previous swing high at $28 mark.

Therefore, we can expect DOT/USD to start moving higher once again after a new higher low is established. Based on the previous price action, the higher low could be found around the 50-61.8 Fibonacci retracement area. From there, the next target to the upside is located around $28 mark.

Once the $28 mark breaks, the Polkadot price action is expected to become increasingly bullish once again, likely resulting in a new all-time high above the 49 mark over the following weeks. However, for now, it is best to stay neutral and wait for further Polkadot price action development in the form of reversal.

Alternatively, if DOT/USD moves much lower over the next 24 hours, we could see the market continue moving sideways over the rest of the month as bulls still prepare a base for the next major upswing.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bearish as the market continued to move lower overnight after a higher high was set at the $26 mark. Therefore, we expect VET/USD to establish a higher low around the 50-61.8 percent Fibonacci retracement level over the next 24 hours, and move higher towards the $28 next resistance from there.

While waiting for Polkadot to retrace further, read our guides on Cardano staking, as well as Should you buy Bitcoin and how to buy Bitcoin stock.

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-2021-06-16/