Polkadot (DOT) is available at red now as the bears seek to regain control of its price. DOT traded at $4.37 on January 1, 2023, and rose to $5.13 on January 11.
It stayed within this range before moving to $6.23 on January 20th. Also, DOT rose to the $7 price level on February 17 as bulls controlled its price.
However, a gradual reversal between March and April forced it back to $5, where it is currently trading today.
Polkadot Price Prediction Now Are Bears Taking Control?
DOT is trading in a sideways trend that forms a red candle on the daily chart. It is below its 50 days and 200 days Simple Moving Average (SMA)with bearish sentiment in the short and long term.
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The SMA calculates the average price of the asset over a specific period and helps predict the direction of the trend. If the bears continue, DOT’s 50-day SMA, which is about to fall below the 200-day SMA, will form a death cross. Also, the Relative Strength Index (RSI) is 40.73 and in the neutral zone. RSI is a trend-based indicator.
DOT’s RSI is moving lower, indicating further price declines in the oversold region ahead of the trend reversal. The cryptocurrency Moving Average Convergence/Divergence (MACD) is slightly above its signal line and indicates convergence.
Also, the MACD – a trend momentum indicator that shows the relationship between two exponential moving averages (EMAs) and the price of the asset, shows a negative value in line with the current bearish trend. The green histogram bars have disappeared, indicating a changing trend direction.
DOT’s technical indicators all point to the possibility of further declines in asset prices. It is close to the $5.29 support level while bears at the $5.42 resistance continue to move its price, forcing a decline.
The DOT has remained in a sideways trend for the past few days and further price cuts remain a possibility. However, if the bulls rally again, the $5.42 resistance level could be a realistic target before the $6 psychological resistance level.
The altcoin is likely to enter a downtrend if the bears continue the current pressure. But one thing that offers the possibility of a drastic change is the upcoming ‘Polkadot Decoded 2023’ event in June.
Polkadot Decoded 2023 May Improve DOT Performance
Polkadot hosts a community activity‘Polkadot Decoded 2023’, between June 28-29 in Copenhagen, Denmark. This event will be held at Polkadot community of progressive talks anchored by over 100 quality speakers in the crypto community. Also, developers will benefit from interactive and practical sessions based on Polkadot’s technology.
Free virtual tickets are now available for the wider crypto community around the world to stream the event online.
Featured image from pIxabay and chart from Tradingview.com
