Polkadot, (DOT), has stood for some time at this price level. Many altcoins have fallen below the resistance level due to the consistent decline of market leaders. The market has been very challenging for investors in recent times.
It is not clear that the returns were reliable. The bearish conditions of the market have caused a steep decline in Polkadot’s buying power. Recent developments have brought the coin to prominence.
These are developments related to multi-chain interoperability, which was first announced at the beginning of October. This has helped buyers enter the market. However, selling pressure continues to dominate buying pressure.
Polkadot’s ecosystem is now constantly working to create new projects by means of para-chain bidding. However, it is not yet clear if the coin will maintain its price action or touch its resistance level in the coming trading sessions.
Polkadot Price Analysis: One Day Chart
After several rejections of the $11 price, the altcoin was valued at $10. Altcoin’s nearest support level was $8. If it falls below this, DOT may be forced to pay $6.26. DOT fell below its support line for 10 months in 48 hours.
Over the last 24 hour, the coin has tried to move northwards. But the bulls are tired. A lack of buyers has caused bullish actions to cease. Although the green trading volume indicates positive price action (which is usually a sign that there was some activity), another session could be dominated by sellers.
Technical Analysis
The recent developments in Polkadot, DOT have been quite significant and could have helped investors to gain more confidence. Relative Strength Index: The indicator was below half-line however, it did show an improvement.
This was a sign that buyers are re-entering, however buyers remain cautious due to lackluster price action. The same was true for DOT, which remained below 20-SMA. This is considered to be bearish. According to this reading, the sellers still drove the price momentum.
A small push by bears may help DOT move above the 20SMA. This could allow price stability.
Polkadot Displayed Bearish Engulfing Candlestick; Suggests Further Downtrend| Polkadot Displayed Bearish Engulfing Candlestick; Suggests Further Downtrend
Polkadot may target $14, if current price action shows some momentum. Price momentum is indicated by Moving Average Convergence Divergence. MACD flashed green histograms at the top of the half-line, which indicates a buy signal.
It is possible for altcoin to see some relief when buyers make an offer. Bollinger Bands show price volatility for the coin. A squeeze can lead to price fluctuations. At press time though, Bollinger Bands flashed nearly parallel movement indicating a stability in DOT’s price movement.
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