Polkadot Price Movement Analysis for 18th April, 2021

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Polkadot is one of the few altcoins that has been profitable in the industry. Despite a significant decline in price on April 18, the coin had returned at least 500 percent to its owners since the beginning of the year.

DOT was trading at $35.22 and had a market value of $33.16 billion.

Polkadot daily chart

Polkadot’s price chart above shows that the digital asset has been fluctuating between $35 and $46. The token attempted but failed to break through the upper resistance. It had been traded directly under this resistance before earlier in the day, when a spike in uncertainty caused the stock to fall below the $35 support. DOT was able to break through the funding and was now trading at $35.

Since the market has been roiled by uncertainty, a change in direction would be difficult to detect at this early stage.

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Reasoning

The Bollinger Bands had opened up to high fluctuations, however when the price fell, the volatility decreased. This was demonstrated by the convergence of the bands, which indicated that DOT mobility was limited. The signal line had risen over the price bars, indicating that the stock was already in a downtrend.

The relative strength index showed that the digital asset remained close to the overbought zone, but an increase in selling pressure moved it below its equilibrium zone. DOT was now approaching the oversold zone, confirming the increase in selling pressure. The MACD line, on the other hand, had fallen below the signal line, indicating an increase in bearishness in the DOT market.

If bearishness persists, DOT can enter the oversold sector, allowing the price to fall even further.

Crucial levels

Entry-level: $33.38
Take profit: $27.12
Stop-level: $37.32
Risk to Reward: 1.59

Conclusion

The new DOT market was under significant selling pressure. With the sell-off intensifying, the price can shift towards the $35 support level. If the market fails to hold onto the help at this stage, it will soon experience a significant price reversal.

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