Polkadot Displayed Bearish Engulfing Candlestick; Suggests Further Downtrend

Polkadot has been on a sharp decline over the last week as the broader market extended losses at press time. Bitcoin nosedived to $28,000 and presented a loss of 7% over the last 24 hours. All major altcoins have followed the same path registering losses on the daily chart. Polkadot was trading in a descending trendline, although, DOT tried to recover on charts. The recovery can be stalled if buyers don’t return to the market. The price of the altcoin was trading close to its immediate support of $8.04. DOT was last seen trading around this price last in July 2021. In the last four months, Polkadot displayed rangebound rallies. The price of DOT was sandwiched between $24 and $16 over the last 17 weeks. Although Polkadot staged a revival, it is too early to conclude if the coin will continue to move northbound. Polkadot Price Analysis: One Day Chart Polkadot was trading at $10.64 at the time of writing. In the last 24 hours, DOT lost over 12% and in the past week, the coin lost close to 30% of its market value. Descending trendline depicts bearishness, even though the coin was attempting to rise above the immediate resistance line of $10.80. Moving above the $10.80 price level, the coin could target $13.22. To invalidate the bearish thesis the coin has to trade above the $14 price level. The coin displayed a series of bearish engulfing candlesticks (green arrow) on the one day chart. The bearish engulfing candlesticks mar...