• Polkadot’s (DOT) price has been falling in recent days due to the fall in Bitcoin’s price.
• Over the last 24 hours, DOT lost 3% of its market value and over the last week it has lost close to 6%.
• The demand for DOT is decreasing and if it falls below its support level of $6.20, it could reach $5.70.
Polkadot (DOT) Price Decline
The Polkadot (DOT) price started to note a fall on its daily chart after Bitcoin could not stay above the $24,000 price. Other significant altcoins followed suit with Bitcoin’s descent on its chart. Over the last 24 hours, DOT lost 3% of its market value and in the last week, the altcoin lost close to 6%.
Declining Demand
The technical outlook also started to portray how the bulls were losing strength on the daily chart. Demand for the altcoin noted a downtick, which is why even accumulation fell on the chart. With a fall in demand, DOT is headed toward its nearest support level, and a continued reduction in buying strength will push Polkadot below its support line.
Technical Analysis
The market capitalization of DOT noted a decline, which meant that sellers had started to resurface in the market. At time of writing, Polkadot was exchanging hands at $6.28 with an immediate support level at $6.20; breaching this level will bring Polkadot to $5.70 as its nearest support line while overhead resistance stood at $6.60 with potential upside towards revisiting mark of $7 if broken past this level . The Relative Strength Index was below 60 but displayed an increase in buying strength so buyers still had power over sellers in terms of trading activities .
Positive Outlook For Altcoin
If demand in broader market improves with BTC appreciating and moving above key mark , then demand for other altcoins including DOT will increase on chart . This could lead to positive outlook for coin’s price movement , leading it up towards new highs or consolidations around current levels .
Conclusion
Polkadot has been going through a period of correction recently due mainly due to decrease demand from traders . In order for coin’s performance improvement , it must break past overhead resistance levels along with improving sentiment from wider crypto markets . If these conditions are met , then we can expect positive outlook for dot’s future performance