By Franklin Smith
- Bearish trends influence Polkadot price as analysts observe a decline in on-chain activity and trade volume.
- On 1 April 2022, the leading exchange launched DOT/BDOT liquidity pool.
- Analysts have forecasted more price fall in DOT price, setting a downward target near $20.26.
Polkadot price witnesses a downside bias as crypto analysts unveil a bearish picture on the token. Moreover, the alt’s network records a decline in on-chain activity, driving DOT lower. For now, experts anticipate further drops from the alternative coin.
DOT Price Might Plunge towards $20.26 amid Downtrend Resumption
Polkadot had its price somewhat unchanged within the previous 24 hours. InvestorObserver utilizes a scoring approach to evaluate an alt’s possibility of suffering price drops or manipulation plus related risks.
The scoring system shows low trade volume and risk as far as Polkadot is concerned. That supports DOT further plummets in the ongoing cycle.
Binance is a leading crypto exchange globally in terms of volume. The exchange’s liquidity network introduced Polkadot support via a liquidity pool launch, the DOT/BDOT. Adding Binance’s liquidity pool might increase the alt’s adoption among investors using the liquidity platform and the exchange.
Analysts examined DOT price actions and observed a bearish tendency. Crypto experts trust the alternative token might secure support around the $20.09 mark.
Market analyst William Suberg noted that the Relative Strength Indicator swayed at 42.14. That highlights an upcoming price drop in the alt. Nevertheless, DOT might see its price pumping high (in the medium term) according to price bias.
FXStreet analysts trust Polkadot price might encounter rejection, providing sidelined investors an entry opportunity. Experts observed a case that might mean an entry-level at around $30. Meanwhile, DOT has a double-top set-up around the $23.80 mark. This area coincides with Polkadot’s next resistance.
Crypto experts argue that downward movements might push DOT prices beneath $20.09, triggering a pessimistic narrative among Polkadot traders.
Meanwhile, the overall crypto market showed weakness overnight. The global cryptocurrency market capitalization lost 0.25% over the past 24 hours to $2.16 trillion.
That comes as Bitcoin appears to lose steam. BTC lost 0.57% since yesterday, trading at $46,162.44. However, staying above $46K maintains the currency’s upside narrative.