Polkadot price could crash 20% amidst Silvergate FUD and crypto market uncertainty

Polkadot (DOT) price dropped in tandem with Bitcoin and Ethereum amidst the rising uncertainty surrounding Silvergate bank. DOT could witness a 20% crash in the short-term, in the absence of a bullish catalyst and in response to the tumultuous events in crypto. 

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Polkadot price is at risk of 20% decline

Polkadot price is currently consolidating, following the short-term uptrend that started in the beginning of January 2023. DOT is trading below its three Exponential Moving Averages (EMAs), 50, 100 and 200-day at $6.36, $6.59 and $6.17.

The Ethereum-alternative made attempts to stay above the trendline, however it remains to be seen whether DOT will rebound from the trendline or close below it. A 20% crash from $6.04 could push Polkadot price back to $4.8, a level previously tested in the first week of January 2023. Within less than 90 days, Polkadot price made bullish strides pushing DOT price to its local peak of $7.89 before beginning its correction.

Depending on Bitcoin’s recovery, DOT could attempt to make a comeback to February's close of $6.36. 

DOT/USDT price chart 

If the bearish thesis is validated and DOT nosedives, it could wipe out all gains in 2023 and hit the $4.23 level, where it started its uptrend. The Relative Strength Index (RSI) is close to oversold (30), at 32.20. There is room for a recovery in Polkadot. Since mid-February RSI has been in a downtrend, similar to the Polkadot price. 

If DOT climbs above its three EMAs and flips resistance at $6.84 into support, it could invalidate the bearish thesis.