After a tough month of September, Polkadot’s price looks poised to reverse the trend in October after showing an aggressive bullish move in the past two trading sessions. However, today’s trading session signals that we might see the prices resuming the bearish trend, with Polkadot already down by 2 per cent.
Polkadot continued drop in the market has largely been due to the current bear market of the cryptocurrency industry. The past few weeks have seen most investors move to the fear region of the greed and fear index. Therefore, we have started to see a slow investment in the cryptocurrency markets, which has also been exacerbated by the current economic environment, including high inflation rates, rising interest rates and fear of a looming recession.
Due to Polkadot being highly correlated with the industry, the slowdown of investments in the cryptocurrency market has meant its prices have also been dragged down. This can be seen in its trading volume, which is erratic. For instance, in the past 24 hours, Polkadot’s trading volume has dropped by more than 10 per cent bringing its total volume to below $200 million. Such huge swings in trading volume always impact the cryptocurrency impacted.
Polkadot Price Prediction
Despite starting the month strongly, my Polkadot price prediction expects October to mirror September’s price action. Therefore, the previous two days that resulted in Polkadot price surging by more than 4 per cent resulted from price retracement and not a price reversal.
Therefore, I expect Polkadot price to continue dropping and possibly set a new yearly price low after hitting the recent one at $5.96. There is a high likelihood we might continue to see it dropping below the $5 price level. My bearish analysis will, however, be invalidated should the prices reverse and trade above the $7 price level.
Polkadot Daily Chart
