Polkadot (DOT) has declined by 11.62% in the past 24 hours, dropping to $6.85 with a 24-hour trading volume of $619,673,488. 

Despite the short-term decrease, the cryptocurrency has seen a 4.17% increase over the last week. Polkadot’s current market capitalization stands at $10,388,102,929, with a circulating supply of 1.5 billion DOT tokens.

Polkadot’s price has been trading within a 24-hour range of $6.72 to $7.84, and over the past week, it has fluctuated between $6.60 and $7.88. 

Technical Indicators Signal a Bearish Trend

Technical analysis of the DOT/USDT trading pair reveals bearish market conditions. Polkadot’s price is trading below the 20-day moving average ($7.18), and the Bollinger Bands indicate downward pressure with immediate support at $6.50 and resistance near $7.18 and $8.

Source: TradingView

The Relative Strength Index (RSI) is currently at 41.88, suggesting that sellers have control as it remains below the neutral 50 level. A further decline in RSI toward the 30 range could signal increased selling momentum. 

The Awesome Oscillator (AO) also reflects negative momentum with a bearish histogram of -0.45, indicating the potential for additional downside movement.

Liquidations Highlight Selling Pressure

Data from Coinglass shows a sharp increase in long liquidations, with $1.23 million in long positions closed compared to $66,860 in shorts. This liquidation imbalance suggests that the recent decline in DOT’s price forced leveraged traders to close positions, exacerbating the selling pressure.

Source: Coinglass

Binance and Bybit accounted for the largest liquidation volumes, with $342,820 and $503,340 in long positions liquidated, respectively. The data also shows a trading volume increase of 84.96%, reaching $993.71 million, while open interest decreased by 11.47% to $475.61 million.

Analyst Expectations for Polkadot

Crypto analyst Andrew Griffiths shared his view on Polkadot’s price movement, stating, “Polkadot is quite old and large, with a market capitalization already exceeding $10 billion. Despite its size, the target of $20 is realistic in the medium term.” 

He added that DOT’s consolidation above the 50-day EMA and recent test pump could signal future growth, potentially aligning with Fibonacci levels at 0.5 and 0.618.

Source: X

Market participants may closely monitor DOT’s price action, especially around the $6.50 support zone, for signs of a potential reversal or continuation of the bearish trend.

FAQs:

What is Polkadot’s current price?

Polkadot (DOT) is trading at $6.85, with a 24-hour decline of 11.62%.

What is the market cap of Polkadot?

Polkadot’s market cap stands at $10.38 billion, with 1.5 billion DOT tokens in circulation.

What are key support and resistance levels for DOT?

Support is at $6.50, with resistance at $7.18 and $8, according to technical analysis.

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