In today’s trading session, Polkadot is down by a percentage point, failing to continue its most recent attempt at price reversal. Today’s price drop is also a resumption of the long-term bearish trend that started on August 13.
At its core, Polkadot is designed to support other blockchains. It also offers a platform upon which other blockchain technologies can be built. These functionalities have made it popular within the blockchain community and has seen it grow to become the 11th largest cryptocurrency with a market capitalization of $8.5 billion.
Despite this growth, the past few weeks have been rough for the cryptocurrency and has seen its prices plunge by a quarter of its value since August 14. Part of the reason for the recent drop has been due to the current cryptocurrency industry struggle. Major cryptocurrencies such as Bitcoin and Ethereum have entered long-term bearish trends. As a result, Polkadot and other altcoins have started to follow the trend of these cryptocurrencies, and the result has been an aggressive downward trend for the entire industry. The downside of the industry’s bearish trend has been due to the positive correlation between cryptocurrencies, whereby when major coins are doing badly, almost the rest of the altcoins are affected.
Polkadot Price Prediction
Looking at the chart below, today’s resumption of the bearish trend is likely to see the next few trading sessions also moving downwards. Therefore, I expect Polkadot price to hit the $7.4 support level.
Based on the current price action, there is a high likelihood that we might see Polkadot starting to trade below the $7 price level in the next few trading sessions. Prices may fall as far back as below the $6.5 price level and possibly hit the $6.3 price level.
However, prices moving above the $8 price level will invalidate my bearish analysis. At that price level, it will mean that the bulls have won.