A few days ago, the market turned bearish as Bitcoin fell 16% from its all-time high at $69,000. DOT prices have also been bearish, currently 26.89% down from its all-time high witnessed on Nov 5.
While the market retains its bearish stance, the entire crypto industry is looking to regain lost support levels. As per data from CoinmarketCap, the 24-hour trading volume for Polkadot [DOT] rests at 2.1 billion USD, which is a hike from 31.30% in the last 24-hours.
On the other hand, the market capitalization of the token rests at $39.7 billion, awarding the 8th rank to Polkadot. The price action still lacks volume on the daily chart.
DOT price analysis on the daily chart
Polkadot recently hosted its first parachain auctions that turned the prices bullish for the token. The price action saw a new all-time high, with Acala winning the first round for the parachain auction.
Furthermore the technical indicators have turned bearish for the price action. The price momentum is trying to break down from the lower end of the Bollinger Bands as bears take over the market.
The 100-day Moving Averages remain below the price action while the prices drop below the 50-day Moving Average.
The RSI entered the bearish zone, moving towards the 40-level. However, the market remains bearish on the whole. The gradient has turned positive, i.e., higher prices are possible for the near future.
The MACD line is also bearish with a histogram full of red bars and the orange line (signal line) progressing above the MACD line (the blue one). The selling pressure is high as buyers are unable to take the prices higher.
As inflation continues to thrive, deflationary assets are now in-demand. While the entire market is still stabilizing, Bitcoin will definitely move higher in the coming weeks, and so will Polkadot.