Polka Dot (DOT) is in the red today as the bears try to regain control of the price. DOT traded at $4.37 on January 1, 2023 and surged to $5.13 on January 11.
It stayed within this range before moving to $6.23 on January 20. Also, DOT surged to the $7 price level on Feb. 17 as the bulls seized control of the price.
However, a gradual bearish turn between March and April forced it back to $5 where it is currently trading today.
Polkadot Price Prediction Today Are the bears in charge?
DOT is trading in a sideways trend forming a red candle on the daily chart. It is under 50 days and 200 days Simple Moving Averages (SMA)with short and long term bearish sentiment.
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The SMA calculates the average price of an asset over a period of time and helps predict its trend direction. If the bears continue, DOT’s 50-day SMA, which is about to drop below the 200-day SMA, will form a death cross. Also the Relative Strength Index (RSI) is 40.73 and in the neutral zone. The RSI is a trend indicator.
DOT’s RSI is moving downwards, suggesting a further price drop into the oversold territory before a trend reversal. The cryptocurrencies Moving Average Convergence/Divergence (MACD) is slightly above its signal line and shows convergence.
Also, the MACD – a trend momentum indicator that shows the relationship between two exponential moving averages (EMAs) and an asset’s price – shows a negative reading that corresponds to today’s bearish trend. The green histogram bars fade, indicating a changing trend direction.
DOT’s technical indicators all point to the possibility of a further price drop for the asset. It is close to the $5.29 support level as the bears at the $5.42 resistance continue to act on the price, forcing a decline.
DOT has remained in a sideways trend for the past few days and further price decline remains a possibility. Although IIf the bulls rally again, the $5.42 resistance level will be a realistic target before the $6 psychological resistance level.
The altcoin is likely to enter a downtrend if the bears keep up the pressure today. But one thing that offers the possibility of a bullish reversal is the upcoming ‘Polkadot Decoded 2023’ event in June.
Polkadot decoded 2023 could improve DOT performance
Polkadot organizes one community event‘Polkadot Decoded 2023’, between June 28 and 29 in Copenhagen, Denmark. This event collects the Polkadot community anchored in progressive conversations by over 100 quality speakers in the crypto community. Developers will also benefit from interactive and hands-on sessions based on Polkadot’s technology.
Free virtual tickets are currently available for the wider crypto community around the world to stream the event online.
Featured image from pIxabay and chart from Tradingview.com