Polkadot price has erased Thursday’s gains as extreme fear grips the market. In the previous session, the crypto fear & greed index was at a fear level of 29. Notably, the emotion has intensified in Friday’s session at a reading of 23.
Subsequently, the trend observed in Polkadot is observable in other cryptocurrencies. For instance, Bitcoin has remained below the psychologically crucial level of $50,000. The trend will likely continue in the short term.
Polkadot price prediction
DOT has edged lower after pulling back from Thursday’s high of 27.79. The altcoin has been on a downtrend since early November when it hit its all-time high at 55.28.
At the time of writing, Polkadot price was down by 3.77% at 25.03. On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. It is also below the long-term 200-day EMA.
In the short term, I expect the crypto to remain under pressure. It may trade within a horizontal channel of between the week’s low of 24.31 and along the 50-day EMA at 27.50. Below the range’s lower border, the bears will be eyeing a 5-month low of 20.00.
On the upside, a move above the upper border will likely place the resistance level at 30.02. However, as long as it remains below the 200-day EMA at 33.20, Polkadot price will remain in a bear market.