Is Catching the Falling Knife Possible?

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Polka­dot price has resumed its strong bear­ish trend in today’s trad­ing ses­sion, after clos­ing the mar­kets with a per­cent­age gain yes­ter­day. The cryp­to is also poised to hit and set a new price low today, or in the next few trad­ing sessions. 

Polkadot Recent Price History Analysis

Today’s drop in the price of the Polka­dot is not sur­pris­ing. In June, the cryp­to lost 32 per cent of its val­ue. This is despite the month start­ing strong­ly and show­ing signs of a recov­ery fol­low­ing the 28 per cent drop in May. Instead, June saw two aggres­sive bear­ish moves: one ear­ly in the month, when the cryp­tocur­ren­cy dropped 36 per cent in 12 days, and the most recent, which result­ed in a 20 per cent drop in 7 days.

Look­ing at the big­ger pic­ture, year-to-date data also offers us insight into the per­for­mance of Polka­dot, with data show­ing a 74 per cent drop. Com­pared to oth­er cryp­tocur­ren­cies such as Bit­coin and Ethereum, Polka­dot has per­formed rel­a­tive­ly worse. 

Polkadot Price Prediction

Based on the Polka­dot price his­to­ry analy­sis above, the cur­rent trend of the cryp­tocur­ren­cy is still a strong bear­ish trend. Today, the prices have dropped by 4 per­cent, which sets the stage for what I expect to be a strong bear­ish market. 

I expect the prices to con­tin­ue falling through­out the month. There is a high like­li­hood that we will see prices trad­ing below the $5 price lev­el in the next few trad­ing ses­sions. Look­ing at the chart below, there is also a high like­li­hood of Polka­dot set­ting a new price low in the next few weeks. This analy­sis is based on price his­to­ry analy­sis, where Polkadot’s price has dropped by 87 per cent since hit­ting its all-time price high on Novem­ber 4, 2021. Today, trad­ing at only a $6 price lev­el, it will not take a lot of effort to drop below the all-time price low of $2.59, set two years ago.

How­ev­er, if the cryp­tocur­ren­cy mar­kets recov­er, my analy­sis will be inval­i­dat­ed. It will also mean a pos­si­ble recovery.

Polkadot Daily Chart



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