Polkadot holding at $16 support: DOT suggests bearish trend possible

Polkadot price analysis for Feb 22, 2022, confirms that the world’s 13th-biggest cryptocurrency has obtained a bearish trajectory when it comes to prices. It can be seen that the token fell to the 13th rank, as per our DOT price analysis for Feb 21. Another important fact to note is that DOT might fall to the lower support levels despite $16 being a major support level. 

The data from CoinMarketCap shows that the trading volume of Polkadot surged 60.76% in the last 24 hours followed by an 8.32% drop in the market cap. Moreover, the value of the Volume / Market Cap Ratio stands at 0.0943 while the Market Dominance of the token rests at 0.96%. 

Another important thing to note is that the daily candle for Polkadot opened at a price of $16.18 and reached a daily high of $16.47. Moreover, the daily low for the token stands at $15.8 while the price of 1 DOT at the time of writing is $16.03.

Polkadot price analysis on the daily chart for Feb 22

Polkadot price analysis on the daily chart for Feb 22 suggests that the DOT token has potential in the long term based on readings from 3 major indicators in the market.

Source: TradingView

The Polkadot RSI shows a value of 31.36 and the RSI continues with a bearish trajectory. Moreover, the gradient of the line is negative which means that lower prices are possible. 

The MACD indicator shows that the MACD line (blue) has dropped below the signal line (orange) which confirms a bearish divergence, showing that the bears are in control. 

The price action for Polkadot aims to retest the lower end of the Bollinger Bands and it seems that if the selling volume continues to surge, prices might decline below $15. 

Conclusion

Polkadot price analysis on the daily chart suggests that the possibility for DOT dropping below $16 is very high. Furthermore, the indicators remain bearish and suggest that the next support might be at $15.