- Polkadot (DOT) faces a bearish trend, struggling at $6 support amid market challenges.
- DOT’s downward trajectory is likely to continue, the 4-hour chart shows bearish technical indicators.
- DOT’s short-term bullish attempt is overshadowed by persistent bearish signals on the daily chart.
Polkadot (DOT) is currently facing challenges in rebounding from the critical $6 support level, signaling a bearish outlook. The cryptocurrency is experiencing a sharp decline, with its value approaching new lows.
The price of $DOT needs to bounce from the crucial support of $6 in order to remain bullish!
If it falls below this level, #Polkadot might be in danger in the short term. pic.twitter.com/OzqpNss405
— Market Spotter (@MarketSpotter) June 16, 2024
This steep fall is driven by widespread market instability, pessimistic investor outlook, and regulatory challenges. As DOT’s price continues to diminish, investors are encouraged to prepare for additional decreases and reconsider their investment approaches in response to these negative indicators.
Analyzing Polkadot’s 1-Hour and 4-Hour Price Charts
On the 4-hour chart, DOT’s price retraced following a departure from the prior bearish triangle formation and has resumed its downward trajectory. Despite attempts to ascend, it appears likely that the price will persist in falling.
The 4-hour Composite Trend Oscillator’s formation also indicates potential further declines for DOT’s price. This prediction arises from the indicator’s signal line and Simple Moving Average (SMA) trending near the oversold territory.
On the daily chart, DOT is making an effort for an upward move beneath the 100-day SMA after registering a bearish candlestick previously. The daily price pattern suggests that this upward attempt by DOT may be short-lived.
Furthermore, the daily chart’s 1-day Composite Trend Oscillator confirms that DOT’s price trend remains decidedly bearish, with both the signal line and SMA descending below the zero mark towards the oversold area.
At the time this was written, DOT traded at $6.23, reflecting a decline of 3.69%. Its market capitalization was $8.95 billion, with a 24-hour trading volume of $97.1 million.
However, DOT has achieved several milestones recently so, all is not lost. For instance, Polkadot (DOT) ushered in $10 T RWA tokenization adoption in the beginning of the past trading week.