Polkadot price plummets as the altcoin shows bearish trend, on-chain activity drops
- Polkadot price is influenced by a bearish trend as analysts note a drop in trade volume and on-chain activity.
- The world’s largest exchange recently opened a DOT/BDOT liquidity pool on April 1, 2022.
- Analysts have predicted a further drop in Polkadot price and set a downside target at $20.26.
Polkadot price is on a downward trend as analysts reveal a bearish outlook on the altcoin. On-chain activity on the altcoin’s network has plummeted, driving the Polkadot price lower.
Polkadot price could drop to $20.26 as the altcoin resumes downtrend
Polkadot price remained unchanged over the past 24 hours. InvestorsObserver uses a scoring system to assess an altcoin’s risk and potential to suffer manipulation or price drop. The scoring system indicates low risk and trade volume in Polkadot. This implies Polkadot price could plummet further in the current cycle.
Binance is considered the largest exchange in the world by volume. The exchange's liquidity platform recently added support for Ethereum's alternative, Polkadot, opening a DOT/BDOT liquidity pool. An addition to Binance’s liquidity pool could drive the adoption of the altcoin among users on the exchange and the platform.
Analysts have evaluated the Polkadot price trend and revealed a bearish outlook. Analysts believe the Polkadot price could find support at $20.09.
William Suberg, a crypto analyst, observed that the Relative Strength Index (RSI) Indicator is at 42.14; this implies an upcoming correction in the altcoin. Polkadot prices could move up in the medium term based on the price trend.
Analysts at FXStreet believe Polkadot price could get rejected, offering entry for sidelined investors. Analysts noted a rejection offering an entry-level for bulls at $30. There is a double-top formation at $23.80; this coincides with the next resistance for the altcoin.
Analysts argue that a downtrend could push price below $20.09, fueling a bearish narrative among investors.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
