In the past few days, the price of Polkadot (DOT) has started observing a downfall. At the beginning of March 2022, the value of Polkadot was hovering in the high figures, but later on, its price started plummeting.
Prior to the dip, the price of Polkadot had reached a high price of $19.02 per DOT, but it is now down to $16.36 per DOT. Even the past 24-hours have resulted in a 3.88% dip for Polkadot, and have set it on a bearish journey.
For now, the trend line for Polkadot is moving in the descending channel. This means that Polkadot is looking at more price drops in the near future and the situation may not change until the bulls come into action.
Summary Scale for Polkadot is Bearish
If we look at the summary scale for Polkadot on TradingView, we would see that Polkadot is mainly bearish. Due to the constant price dips, the sentiments of the investors have moved into the negative zone.
The investors have been constantly losing their confidence in Polkadot and they have started backing away. This has started pushing the price of Polkadot to a lower figure, and it may continue falling deeper if the bulls do not rally against the selling pressure of the bears.
At the moment, every 15 out of the 26 investors prefer selling Polkadot, while 10 investors prefer staying neutral. Surprisingly, only 1 out of every 26 investors are willing to buy Polkadot. The analysts have pointed out the scale of the moving average, which shows that the investor haves strong selling sentiments.
The relative strength index is currently at 39.19, which is even more alarming because the actual trend line tends to follow the RSI. The ultimate oscillator is also at 43.31, which is also indicating that a negative trend is in order.
Bears May Pull Polkadot to $12.58
As the technical factors suggest, the price of Polkadot may continue getting pushed deeper, becoming more favorable for the bears. If the bulls keep witnessing a downtrend for Polkadot, they may continue leaving the field open for the bears. Even neutral investors may start siding with the bears, providing more strength to the bears.
As the bears gain more strength, they may push Polkadot down to the support channel, where the first checkpoint would be $14.72 per DOT.
At the resistance checkpoints, the bulls may try and push back with high-level purchasing of Polkadot. If the bulls do not succeed, then the bears may drive more force, eventually pushing the price of Polkadot down to $13.25 per DOT. The constant pressure from the bears may finally sink the price of Polkadot to $12.58 per DOT.