Polkadot falls 7% in 24 hours: DOT HODLers need to change strategy

Polkadot price analysis for Feb 18, 2022, does not bring good news for the DOT token, which has fallen nearly 7% in the past 24 hours. As seen in our DOT price analysis for Feb 17, 2022, the token had dropped 7% in 7 days, but now, the value has nearly doubled for the week. It seems that HODLers might need to change their strategy. 

The data from CoinMarketCap shows that the trading volume for DOT has surged 33.86% in the last 24 hours, followed by a 6.95% drop in the market cap. Moreover, the Market Dominance of the token fell to 0.97%, while the Volume / Market Cap Ratio stands at a value of 0.06396. 

The daily candle for Polkadot opened at a price of $18.17 and reached a daily high of $18.40. Furthermore, the daily low of the token stands at $17.97, while the price of 1 DOT at the time of writing is $18.36. DOT traders are advised to wait and see if DOT reclaims $20. 

Polkadot price analysis for Feb 18, 2022, on the daily chart

Polkadot price analysis on the daily chart uses 3 major indicators, which are very important in the prediction of prices for the short term. However, these are not completely accurate, for crypto is very volatile.

Source: TradingView

The MACD indicator shows that the MACD line (blue) is touching the signal line (orange), which means that a bearish divergence is very much possible. 

The RSI continues in the bearish region and reads a value of 39.95 which means that the selling pressure is defeating the buying pressure. 

The price action has dropped down to the lower end of the Bollinger Bands, and if $18 support for Polkadot doesn’t hold, we might see DOT break out from the lower end. 

Conclusion

Polkadot price analysis for Feb 18, 2022, confirms that the parachain project might’ve lost some of its magic touch from 2021. However, TheCoinRise is still bullish on the token and advises investors to wait out for a breakout from $22.