Polkadot has traded at this current value area for some time. Consistent declines by the top market moves had most alternative tokens near their closest support floors and beneath immediate resistance zones. Indeed, the latest conditions in the marketplace have been harsh for crypto investors.
Polkadot experienced a swift decline in buying momentum due to bearish sentiments across the financial world. Nevertheless, DOT saw the limelight recently amid the latest developments.
The mid-month development announcement focuses on interoperability and multi-chain features. These actions attracted buyers into the marketplace. Nevertheless, selling strength continues to outshine buying momentum in the space.
Polkadot boasts an ecosystem that strives to introduce new projects via para-chain auctions. It’s still uncertain whether DOT will maintain its price movements in the coming sessions and hit the nearest resistance level.
DOT Price Analysis – 1Day Timeframe
While publishing this content, Polkadot traded at $10 following multiple rejections from $11. DOT’s immediate support barrier stands at $8, and declining below the level might see Polkadot hitting $6.26. Meanwhile, the past 48 hours saw the alt breaking beneath its ten-month-long support level.
Polkadot attempted an upside move within the last day, but the bulls seemed tired. Buyers’ absence led to faded bullish action. Trading volume highlighted green, signaling optimistic price action. Nevertheless, another session in the sellers’ hand might shift that tale.
Technical Analysis
As highlighted above, DOT has seen some developments lately. And that might have contributed to investor confidence. The Relative Strength Index hovered beneath the half-line but saw an upswing. The uptick indicated buyers entering the space, but lackluster price movements have buyers wary.
Such developments saw DOT steady beneath the 20-Simple Moving Average, presenting a bearish picture. The mentioned reading shows sellers in control of the space. A push by bulls might propel the token beyond the 20SMA before steady reversals.
Polkadot’s current price moves plus increased momentum would see DOT eyeing $14. The Moving Average Convergence Divergence shows price strength. MACD presented green histograms beyond the half-line, revealing a buy signal.
Buyers’ resurgence would mean a relief rally for the token. Bollinger Bands reflect the coin’s volatility, a squeeze meaning price fluctuation chances. Meanwhile, Bollinger bands displayed somewhat parallel movement at this publication, suggesting stability in Polkadot’s price action.
