The cryptocurrency market continues to underperform and is entering the last two weeks of the year.
The cryptocurrency market had an excellent year in 2021. However, the recent performance may lead to the fact that the broader market will enter the New year bearishly. The prices of most cryptocurrencies have fallen by more than 20% in the last month.
Bitcoin is still struggling below the $50,000 mark, while Ether has lost the big support at the $4,000 mark. DOT, the native coin of the Polkadot ecosystem, is also underperforming, losing more than 3% of its value in the last 24 hours.
Polkadot remains one of the top 10 cryptocurrencies by market capitalization, occupying the tenth place just above LUNA, the native coin of the Terra blockchain. At the time of writing, DOT is trading at just $27 per coin, which represents a 5.5% drop over the past 24 hours.
If market conditions persist, there is a risk that DOT will continue to lose value in the coming hours and days.
Important levels at a glance
The DOT/USD 4-hour chart is currently in decline as the broader market continues to underperform. The Relative Strength Index (RSI) of 32 shows that DOT is currently oversold, a sharply declining indicator.
In addition, the MACD line has fallen below the neutral zone, which indicates that the bears are currently in control of the market. At the time of writing, DOT is trading below its 100-day simple moving average of $32.
If the current state of the market continues, DOT will lose the first major support level at $ 25 and fall below it for the first time since September. In the event of a prolonged bearish performance, DOT may be forced to defend the second major support level at $22 before the end of the day.
However, if market conditions change, DOT could recover in the next few hours towards the first major resistance level at $30. The second major resistance mark at $ 36 should limit further upward movement in the short term.