Polkadot Price Analysis: DOT starts to reverse from $34, more downside next week?

Polkadot price analysis is bearish for today as the market retraced over the last 24 hours after setting a slightly higher high yesterday. Therefore, we expect DOT/USD to continue lower today and retrace more of the gains seen this week.

Polkadot Price Analysis: DOT starts to reverse from $34, more downside next week? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded with mixed results over the last 24 hours. The market leaders, Bitcoin and Ethereum, are up by 0.33 and 0.57 percent, while the rest of the top altcoins are down. Polkadot (DOT) is among the worst performers, with a loss of 2.99 percent.

Polkadot price movement in the last 24 hours: Polkadot retraces from $34 swing high

DOT/USD traded in a range of $32.04 – $33.41, indicating a good amount of volatility over the last 24 hours. Trading volume has decreased by 22.93 percent and totals $1.37 billion, while the total market capitalization trades around $32.2 billion, ranking the coin in 9th place overall.

DOT/USD 4-hour chart: DOT set for further retracement?

On the 4-hour chart, we can see Polkadot price momentum slowing down over the past days after a strong rally earlier this week.

Polkadot Price Analysis: DOT starts to reverse, more downside next week?
DOT/USD 4-hour chart. Source: TradingView

Polkadot price has seen a strong advance over this week. After a higher low was set around $23.5 on the 26th of August, DOT/USD saw another push higher this week.

DOT gained around 45 percent until the $34 mark, reached after a slowdown in momentum and a slightly higher high, indicating exhaustion. This price action development has resulted in a slight retracement over the last 24 hours, with the $32 mark acting as a support for now.

However, considering that bulls are likely exhausted, we expect DOT/USD to start retracing next week and reclaim some of the gain seen this week. The next support target is located at the $30 mark, with further support seen at the $29 previous swing high.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bearish for today as the market has lost its momentum over the past few days, indicating an upcoming retracement. Therefore, we expect DOT/USD to see further downside over the next 24 hours, with $30 as the next support target.

While waiting for Polkadot to move further, read our articles on Wrapped Bitcoin, Decentralized Exchanges, as well as NFT Marketplace.

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