Polkadot (DOT) Bears May Drag Prices Lower Despite Bullish Signs

December’s first week saw the Polkadot price attempting to break beyond its closest resistance zone multiple times. Nevertheless, bulls failed to accumulate massive strength. That indicates that the token’s purchasing power stayed low at high alt price levels.

The coin’s technical outlook reflected declined demand. Accumulation has stayed relatively low for DOT during November and early December. The alternative token gained 2% within the previous day, but that does not reflect bullish actions on the daily chart.

Polkadot has to overpower $5.71 for a move toward $6. Meanwhile, $5.71 has presented a massive obstacle for DOT. Only buyer push and overall market strength can help the token to surge. Also, DOT has seen declines in market cap, confirming ongoing bearish strength.

DOT Price Analysis – 24Hr Chart

While writing this blog, DOT traded near $5.30. Though it moved past the $5 level, bears might drag the prices toward $4.30. That altcoin has its closest resistance at $5.71, overcoming which Polkadot would open gates to $6.

Meanwhile, the initial support floor stood near the $4.50 value area. Losing this footing will see DOT resting at $4 if it doesn’t surrender momentum, which seems unlikely considering the asset’s low demand.

A rebound from $5 might propel the alternative token to levels past $5.70. Such a move would heighten the chance of a rally toward $6.21. meanwhile, the amount of traded Polkadot during the previous session was low, meaning bearishness on DOT’s chart.

DOT Technical Analysis

Polkadot shows buyers lost trust in the alt. The RSI (Relative Strength Index) fell toward 40, suggesting that buyer momentum was lower that selling on the charts. The altcoin has attempted to climb beyond the 20-SMA (Simple Moving Average) multiple times within the last few weeks.

However, bulls could not retain steam. For now, the alt’s price wavers beneath the 20-Simple Moving Average, demonstrating low demand and dominant sellers within the marketplace. Also, other technicals flashed a pessimistic price action.

The DMI (Directional Movement Index) remained negative, with the –DI hovering beyond the +DI. The ADX reflected price momentum and swayed beyond 20 but recorded a drop. The drop flashed weakened strength in DOT’s price momentum. Meanwhile, the Bollinger Bands constricted, suggesting range-bound action and lower Polkadot volatility.