Polkadot drops from $6.12 to $5.98, losing $0.144 (2.36%) today.
Chart analysis indicates Polkadot could begin to recover as it approaches significant support, now 3 cents away from $6. Dipping below could be an indication that further losses are ahead. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Price action remains constrained around the key Fibonacci level of $6 currently serving as support. If price action breaks below, the next Fib hurdle is $5.86. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $5.89, a low enough level to, generally, suggest that Polkadot is trading below its fair value.
Overall, the technical outlook suggests Polkadot is likely to remain muted for the immediate future, with no clear-cut direction.
In the meantime, negative performances are also seen in other markets, after ending today's session at $0.476, Ripple lost $0.019 and is trading around $0.458. After ending today's session at $1,945.26, Ethereum lost $55.26 and is trading around $1,890.
Positive performances can be seen by looking at other markets as FTX Token is up 9.54%.
Approximately 11 months ago, Polkadot reached a significant high of $18.73 but has struggled to hold onto its gains and declined 67.33% since then. Polkadot has a market cap of 7 billion with an average daily volume of 196.15 million.
