The Polkadot price is below all of its major support levels. This could lead to a flush out for DOT and may signal a 50% off sale starts soon.
Polkadot (DOT) is trading at $11.75, down $0.2683 (-2.24%).
The best place to start to highlight just how poor the Polkadot price performance has been over the last 2 months is with the numbers.
DOT is down 30% in the last 10 days and 77% below its 16th of May $47.4555 all-time high.
Furthermore, Polkadot is now up only 50% in 2021, compared to a 542% increase at its high, which is likely to have many of 2021’s buyers underwater on their purchase price.
Considering the high esteem Polkadot is held in, holders will be disappointed with DOT’s current $11.7 billion market cap, almost half that of Dogecoin.
Unfortunately, unless the Polkadot price stages a rapid recovery, there are indications that the decline could get much worse.
The daily chart paints an increasingly negative picture of the price. We can see that DOT has given back 6 months of gains and is trading below May’s crypto crash $13.60 low print.
Furthermore, DOT is beneath the key 50, 100 and 200-day moving averages. Moreover, the 100 DMA at $26.9230 is about to pass below the 200 at $26.6975. Resulting in the Moving Average Convergence Divergence indicator (MACD) flashing a sell signal.
This has left the Polkadot price lacking a significant level of technical support until $6.3700, around 45% below the current price.
However, this negativity has pushed DOT within a whisker of an oversold reading on the Relative Strength Index. The RSI of 30.56 is the lowest reading since DOT’s Binance exchange listing in August 2020. An index reading <30.00 is widely considered to point to a market that has dropped too much in a short period of time.
This could prove crucial for DOT and may intimate sellers from entering the market down here.
However, until Polkadot reclaims the former horizontal support at $13.6200, the path of least resistance is definitely lower.
In saying that, a sharp shock down may present an opportunity for buyers to play the bounce form oversold. Although, that may come from a much lower price.
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