Polkadot (DOT) prices dropped by more than 12% as the daily candle for Friday opened at $39.48, reaching a high of $39.62. What seemed like an uptrend turned into a bearish fall as the candle closed at $34.56 after touching a daily low of $33.67.
As per data from CoinMarketCap, DOT’s trading volume rose by 81.65% and currently stands at 2.24 billion USD. On the other hand, the asset’s market capitalization dropped by more than nearly 9% and was noted at $43.8 billion.
The trend is bearish as we have witnessed three consecutive weekly candles on the weekly chart. After making the all-time high at $55, the prices are down by 35.93%.
DOT price analysis on the daily chart
The 50-day and 100-day Moving Averages continue to progress below the price action, indicating a long-term bearish momentum. These price levels act as important support.
The prices broke out from the lower end of the Bollinger Bands, leading to a drastic 12% drop in prices. Currently, the prices remain in the lower end of the Bands, waiting for the bulls to over.
The MACD indicator shows that the MACD line (the blue one) has broken below the signal line (the orange line), leading to a bearish divergence. This caused a drop in the price and a bearish histogram filled with red bars.
The RSI indicator is clearly in the bearish zone, i.e., below the 50-level. The selling is pressure is very high as traders are capitalizing on the gains made in the past few weeks. Furthermore, the RSI gradient is positive, and we might see higher prices today
Conclusion
The DOT price action is bearish for today, and it is a good time to buy the altcoin before higher prices set in. The Parachain Auctions that installed a bullish notion might continue to drive the coin higher.