Polkadot Technical Analysis: Huge Drop in Volatility & Dominance, What’s Ahead for DOT Price?

Key Takeaways:

• The Polkadot(DOT) price closed the previous day’s trade at $7.0 with a market capitalization of $7.73 billion and a circulating supply of 1.11 billion DOT
• The DOT price has dropped heavily below $10 which includes multiple failed attempts of a rebound 

Additional Read: Top Cryptos this Week

Polkadot Technical Analysis for September 2022

Polkadot appears to be bullish as the market sentiments are positive towards the DOT price as the price is attempting for a firm recovery. The market conditions appear to be favorable for the bulls as the price maintains a significant uptrend over the past couple of days. However, the asset may close the monthly trade on a bullish note as it clears the $7.31 resistance area. 

In the coming month, the DOT price may continue experiencing equal bullish & bearish pressure, compelling the price to consolidate above $8.5. If the asset receives an extensive bullish push, the price may even rise above $9.56 to hit $10. Therefore, by the end of the monthly trade, the price may hover around $10.

Technical Analysis at a Glance

The DOT price had dropped by more than 71% since the 2022 highs close to $24. Presently, the asset is carrying extensive influence of the bears but is holding the lower support at $6.86 firmly. Therefore, the upcoming trend is expected to be a coalition of a consolidated but slightly elevated trend until it reaches $10. 

Technical Indicators & Pivot Levels

Pivot Levels

Polkadot displays the probability of a short term bounce in the short-term as most of the indicators are either slightly bullish or neutral. The RSI is hovering within the average ranges while the bulls are well in the position. However, the MACD displays the rally being still under bearish captivity. 

Conversely, the asset may drop hard in the long term as most of the indicators are extremely bearish, pointing towards ‘sell’. Interestingly, the volatility is pretty less in both the time frames and hence the price movements may be slow & steadily. Regardless of the direction. 

Polkadot Crypto On Chain Metrics Analysis

• Polkadot price ever since have inculcated a bearish outlook and has lost the market dominance significantly. The dominance that had reached above 2% during the Q4 2021 trade has dropped to -0.82% in recent times.

Source: Santiment

• The Polkadot crypto from the past 30 days has reduced the volatility to a large extent. Soon after the May market crash, the volatility spiked extremely high to reach beyond 1.60 levels. However, the recent crash has compelled to volatility rate to drop below 0 to hit -0.86 at the moment.

Source: Santiment

Polkadot (DOT) Technical Analysis for Short Term

Source: Tradingview

• Polkadot price faced a massive rejection, while it was on its way to slicing through the major resistance at $10
• Since then the DOT price has dropped nearly 30% and is expected to drop more until the first few days of September
• Further, a notable flip is expected to uplift the price from the bearish captivity and reach the immediate highs close to $8
• However, before a breakout, the asset is primed to hit the lower support around $6.7 which may attract a catapult action towards the highs

Polkadot (DOT) Technical Analysis for Long-Term

Source: Tradingview

• The Polkadot price is swinging within. a descending parallel channel and interestingly consolidating within the middle ranges 
• As the volume has reduced to a large extent, the probability of a firm rebound appears to be pretty less
• Therefore, the DOT price is expected to continue consolidating within the average levels of the channel for some more time 
• On the brighter side, the indicators are on the verge of flashing a bullish signal and hence the price may discard the bearish trend in the coming days

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