The crypto market continues to decline, and DOT is not escaping this sentiment. To find out where the price of Polkadot is headed, here is an analysis and forecast.
At the time of this writing, DOT is trading at $ 22.04, accumulating a loss of 12.83% in the last 24 hours and a 54.80% in the last 7 days.
Polkadot price technical analysis
When looking at the DOT vs USDT chart in the 4-hour period, we notice a clear short-term bearish direction, composed of lower and lower maximums and lows.
Despite the rapid recovery after the crash that occurred last Wednesday, we are seeing the bulls weak again, letting the bears drag the price towards the lows around $ 19.
It is relevant to note that the downward bias is only in the short term. We could even very soon see this bias turn bullish in the blink of an eye, due to the great strength of the dominant bulls that is observed in larger time frames, as we will see in the following charts.
However, the fall is not unimportant. The price should start to make higher and higher lows and highs even if it is on the 4-hour chart, if we want to confirm that the major trend is being resumed.
DOT vs USDT weekly chart
From the weekly candlestick chart, the current scenario looks a bit more worrisome.
A clear Shoulder Head Shoulder formation could be indicating a deeper drop.
However, it is really never a very good idea to try to trade these patterns against such a strong uptrend as the one we are seeing throughout the crypto market today.
The price is making support at $ 19.40, which could be starting: a complete recovery, and search for new highs, or a pullback to fall a little more.
I repeat, it is not a very good idea to go short in the face of a much larger uptrend. But, obviously there is some very short-term bearish directionality.
To carry out the Polkadot forecast we are going to perform an analysis of the monthly graph. From this time frame we notice the great force of the fall of the last days. But, so far it seems only a correction, healthy and necessary as well.
The developing monthly candle just visited the 61.8% Fibonacci level. This level is considered optimal for a healthy pullback, and from which a new big boost in the long-term trend may be starting.
If we perform an analysis using the Fibonacci retracement tool, tracing it from the lowest point of the momentum, to the all-time high recently reached, we get a bullish forecast of $ 62.5 as the first target and $ 78.47 as the second.
If the adoption and development of the Polkadot project continues as it has been doing for the past few months, these goals do not seem far-fetched.
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