Summary
TLDR: Polkadot (DOT) price failed to recover and experienced a 12% correction, nearing a potentially bearish event. Current market dynamics show more bearish influences, with the Relative Strength Index (RSI) in the bearish zone. A death cross on the 4-hour chart suggests a potential trend reversal to the downside, with a price prediction of $8.10 or lower. However, if market conditions shift favorably, DOT could surpass $9 and establish $9.63 as a new support level, offering hope for a bullish future.
Key Points
1. The Polkadot (DOT) price recently failed in its attempt at recovery, with the altcoin experiencing a correction of over 12% in the last two days. This decline has brought DOT close to a potentially bearish event that could further impact its price.
2. Polkadot is striving for a comeback, currently trading under $9, but the odds for recovery appear slim. Despite a recent rally, DOT has not returned to the highs seen in the previous year, which may deter new investors from entering the market, limiting the asset’s recovery potential.
3. At the moment, with Polkadot trading at $8.63, it is encountering a death cross on the 4-hour chart. A death cross, characterized by the 50-day Exponential Moving Average (EMA) crossing below the 200-day EMA, signals potential bearish sentiment and the possibility of a trend reversal to the downside. Given the lack of bearish indicators, this could mean Polkadot might fail in its recovery attempt and could also see its price retract to $8.10, potentially dropping to or below $8.