Polkadot reached a new all-time high value of $55 on November 4th. It surpassed its previous top of $50 from May 15th and DOT was expected to rise higher. Yet, since reaching $55, the trend has turned strongly bearish for DOT in the short term. At press time, Polkadot is valued at $45.55 with a market cap of $48 billion. While recovery is expected, it might take a little longer than usual.
Polkadot 4-hour time frame
Polkadot reached an all-time high of $55 but it was unable to maintain its position. The asset quickly dropped to $49.5 before rising by 8% in the following 48-hours. However, it wasn’t able to maintain bullish momentum, as DOT dropped down to $42.50 at one time.
At the moment, it is valued at $45.65 but that was not the major concern. Polkadot is displaying a bearish flag pattern at press time as illustrated in the chart. The token is also hovering under both the 21 and 50-period Moving Average. All the signs indicate another drop down to the $40-$41 range in the next few days.
Market Indicators were collectively bearish even though, they may appear positive individually. Relative Strength Index or RSI is currently hovering near the oversold region. The market usually retraces on the upside from this range but market structure indicates selling pressure to increase.
MACD appeared bullish as the blue line remained above the orange line but momentum may keep the indicator under a bearish trend right now. On-balance volume suggested that sellers have begun to take control, as the indicator started to decline in the charts.
How to invest in Polkadot right now
Polkadot registered a 432% growth between 20th July to 4th November. To understand its propensity, Ethereum has improved by 524% since the beginning of 2021. Hence, a little bit of correction is healthy for Polkadot. Over the short term, it is expected to drop down to $40, but further bearish pressure would drag it down to $38-$36.