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Polkadot (DOT) Price Dips below $7 as Crypto Market Sees Massive Liquidations

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VOC, Voice of Crypto, DOT

Key Insights

  • Polkadot has dropped by about 7% over the last day and has seen an almost 4% drop over the last week.
  • With the rest of the market, the price outlook on Polkadot over the last day is bearish overall.
  • In the last 24 hours, Polkadot has canceled almost all its gains over the last few weeks.

 

Polkadot in massive liquidations. The last 24 hours have seen red candles across the cryptocurrency market.

The global crypto market cap fell by 6.8% to $950 billion in the last day, and according to data from CoinGlass, about 391 thousand traders have been liquidated across the crypto market.

So far, traders have lost more than $837 million to trade liquidations in the same period.

Chart showing liquidation data across the crypto market, VOC, Voice Of Crypto

Chart showing liquidation data across the crypto market | Source: CoinGlass

Overall, both Bitcoin and Ethereum have dropped by double-digit percentages, with Bitcoin dropping by 10% and Ethereum dropping by 20%

On the other hand, Polkadot has dropped by about 7% over the last day and has seen an almost 4% drop over the last week.

Snapshot of tokenomics on DOT, VOC, Voice Of Crypto

Snapshot of tokenomics on DOT | Source: CoinMarketCap

Polkadot (DOT) Price Analysis 

With the rest of the market, the price outlook on Polkadot over the last day is bearish overall.

After hitting the $6.15 support in late October, the cryptocurrency rose to the upside along with the rest of the market, eventually hitting the $7.2 resistance last week. The cryptocurrency started to range at this price level as the bulls and bears started to push against one another

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Chart showing price action on Polkadot around the $6.15 zone, VOC

Chart showing price action on Polkadot around the $6.15 zone | Source: Tradingview

Following the massive price dips and the liquidations that have swept through the market over the last 48 hours, the price of DOT reversed from this level and started to trend downwards.

Over the last 24 hours, Polkadot has canceled almost all its gains over the last few weeks. The cryptocurrency is down by 7% over the last day and is also down by almost 4% over the last seven.

As illustrated above, the price decline over the last 24 hours has brought the cryptocurrency below its 50, 100, and 200-period moving averages (red, green, and purple) in the 4-hour timeframe.

Chart showing RSI and MACD conditions on DOT’s daily chart, VOC, Voice of crypto

Chart showing RSI and MACD conditions on DOT’s daily chart | Source: Tradingview

As illustrated above, DOT shows some interesting signs from a wider perspective.

DOT Price Outlook

Despite the price dip over the last day, the RSI on the daily chart has only just managed to break below the neutral line and is now gravitating toward the “slightly oversold” zone. A bearish crossover has also formed between the RSI-based Moving average and its signal line, indicating that the bears have managed to seize control from the bulls.

The MACD shows weakness on the part of Polkadot’s bulls, and a bearish crossover also appears to be on the verge of forming. This indicates that the price of the cryptocurrency may trade even lower and test the resistance around the $6.15 zone

Chart showing the last retest of the $615 - $5.8 zone in December 2020, VOC, Voice of crypto

Chart showing the last retest of the $615 – $5.8 zone in December 2020 | Source: Tradingview

Overall, the bulls are expected to defend the $6.15 – $5.8 resistance against the bears with all they’ve got. Holding this resistance is important, considering how it has remained unbroken for almost two years now since DOT broke it to the upside in December 2020.

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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