After showing signs of recovery early this week, Polkadot (DOT) traded below $7 again as it failed to reach a critical resistance level. 

Polkadot failed to move past the 20-day SMA, a key resistance level and is back trading below $7. $DOT showed early signs of recovery early this week after a successful weekend saw the coin trading above $7. Polkadot further saw a decline in developer activity, possibly fueling its downward trend. 

$DOT Looses Partial Recovery

A mere week ago, Polkadot ($DOT ) showed signs of recovery, trading at $7.11 after a successful weekend. $DOT faced significant resistance and traded back in the red on Monday. Things took a bullish turn during the Tuesday trading session after buyers took control late on Monday, with the price recording an increase of 4.62%, which settled at $7.47. Sellers, however, took control over the following two days, pushing the price back under $7.00. 

The chart below shows $DOT ’s continued oscillation between $6 and $7. 

Polkadot Developer Activity Declines

Data from Coin98Analytics earlier this week showed developer activity on Polkadot had declined. The data shows a list of blockchains ranked according to their development activity. Polkadot registered 827 developers the week before, witnessing over 5,000 weekly code commits. 

Weekly Commits & Active Devs on Popular Blockchain Platforms pic.twitter.com/z7fLAfqGoa

— Coin98 Analytics (@Coin98Analytics) April 26, 2024

While Polkadot’s data is not low per se, it is lower compared to other blockchains, such as Ethereum and BNB Chain. Ethereum saw over 2,000 weekly developers executing over 19,000 commits, while BNB Chain’s weekly commits were over 6,000. 

In Other News

This week saw several developments, including Polkadot’s involvement. Velocity Labs announced a fiat-to-crypto onramp using the Ramp Network through the integration of the Asset Hub. The onramp allows Ramp to service any chain parachain in the Polkadot ecosystem. 

Asset Hub is a system parachain often described as the “home base” of assets in the broad Polkadot ecosystem. Asset Hub’s main function is facilitating the creation, management, and use of assets in the Polkadot ecosystem. 

At the time of writing, Polkadot traded at $6.85, down 3.49% in the past seven days. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

According to PANews, Polkadot's 706th referendum is currently underway, with the proposal aiming to reduce inflation based on a new algorithm and targeting a fixed supply of 2.1 billion DOT. As of now, the proposal is predominantly opposed.

The referendum is a part of Polkadot's governance system, where changes to the network are proposed and voted on by the community. The current proposal aims to curb inflation by implementing a new algorithm. This algorithm is designed to adjust the supply of DOT, Polkadot's native cryptocurrency, with a target of a fixed supply of 2.1 billion DOT.

However, the proposal has been met with significant opposition. The majority of votes cast so far have been against the proposal. The reasons for this opposition are not specified, but it indicates a lack of consensus within the Polkadot community regarding the proposed changes to the network's economic model.

The outcome of the referendum will have significant implications for the future of Polkadot's economic model and the value of the DOT cryptocurrency. If the proposal is accepted, it could lead to a decrease in inflation and potentially increase the value of DOT. Conversely, if the proposal is rejected, it could maintain the status quo or lead to further discussions and proposals on how to manage inflation within the Polkadot network.

Crypto analysts fear a bear market could be on the horizon despite the Bitcoin halving event as classic tokens like Polkadot and Cardano hit the buffers. After a bright Q1 2024, prices fell in April 2024, hitting investor hopes.

However, one new coin making good on its promise of offering investors a superb ROI is Raboo. Now priced at $0.0036 during stage 2 of its ICO, can it defy the bear market conditions and thrive this year? Let’s find out.

Polkadot: Price falls, but scalability remains a priority

The unexpected bear market conditions hitting the crypto market have seen almost 30% shorn off the value of Polkadot’s native DOT token over the past month. After an initial surge to over $9.60 at the end of March, April has seen a massive dip to the current level of $6.83 at the time of writing.

Despite this, Polkadot’s scalability solution remains popular with investors seeking top-quality interoperability. It allows different blockchains to communicate and share information quickly and seamlessly, allowing collaboration and innovation to flourish within the blockchain sector. Polkadot’s robust infrastructure should help it ride this bear market dip and return stronger when bullish sentiment returns.

Cardano: New smart contract drives improved ROI hopes

Cardano is another established crypto player hit by the current bear market conditions, with its price falling over 29% in the past month. However, after plunging to $0.4171 on 13 April, there has been a slight rebound to $0.04684 at the time of writing. Indeed, some analysts believe anyone buying Cardano now could see a good ROI if expected bullish conditions return.

Pushing the Cardano narrative forward are its Plutus V2 smart contracts, which reflect superb growth and innovation. This dedication to enhancing its smart contract environment could help investors reap dividends and gain a handsome ROI as the Cardano ecosystem evolves.

Raboo: Meme coin with 100x ROI potential. Could it be true?

Despite the doom and gloom, Raboo is showing enormous potential with its new meme coin offering, designed to engage a community of meme enthusiasts with its unique blend of AI and SocialFi capabilities.

This playground of NFTs, exclusive merch, and AI-generated memes offers users a unique platform where creativity can run amok. It supports a growing and vibrant community feasting on interaction, exploration, and monetization through Raboo’s unique post-to-earn mechanics.

As the bear market saps the life out of some crypto investors, Raboo’s impressive ROI potential is illustrated by 233% returns predicted for earliest-stage presale investors and a whopping 100x potential once the RABT token undergoes its public launch.

As a result, Raboo is emerging as a significant bright spot amid the bear market sentiment currently afflicting the crypto market. With coins priced at just $0.0036, there’s exciting ROI to be realized in the coming months.

Conclusion

As Raboo’s fast-selling ICO illustrates that rich ROI potential does exist within the current bear market conditions,  Polkadot and Cardano continue to struggle. This battle is echoed across many established projects, leaving the way clear for Raboo’s unique meme coin value proposition to shine through as one of the best crypto investments in 2024.

You can participate in the Raboo presale here.

Disclaimer: This sponsored content is not endorsed by CaptainAltcoin, which takes no responsibility for its accuracy or quality. This content was not written by CaptainAltcoin’s team. We advise readers to do their own research before interacting with any featured companies. The information provided is not financial or legal advice. Neither CaptainAltcoin nor any third party recommends buying or selling any financial products. Investing in crypto assets is high-risk; consider the potential for loss. CaptainAltcoin is not liable for any damages or losses from using or relying on this content.

The post As Bear Market Grips Classic Tokens Like DOT and ADA, Investors Back Raboo Presale for Potential Gains appeared first on CaptainAltcoin.

Disclaimer: This is not investment advice. The information provided is for general purposes only. No information, materials, services and other content provided on this page constitute a solicitation, recommendation, endorsement, or any financial, investment, or other advice. Seek independent professional consultation in the form of legal, financial, and fiscal advice before making any investment decision.

Polkadot is down -3.73% today against the US Dollar

DOT/ETH decreased by -2.04% today

Polkadot is currently trading 26.08% below our prediction on May 01, 2024

Polkadot dropped -30.19% in the last month and is up 10.82% since 1 year ago

Polkadot price $ 6.61 Polkadot prediction $ 8.94 (30.23%) Sentiment Bearish Fear & Greed index 70 (Greed) Key support levels $ 6.72, $ 6.58, $ 6.45 Key resistance levels $ 7.00, $ 7.13, $ 7.27

DOT price is expected to rise by 30.23% in the next 5 days according to our Polkadot price prediction

Polkadot price today is trading at $ 6.61 after losing -3.73% in the last 24 hours. The coin underperformed the cryptocurrency market, as the total crypto market cap decreased by -3.49% in the same time period. DOT performed poorly against BTC today and recorded a -1.04% loss against the world’s largest cryptocurrency.

According to our Polkadot price prediction, DOT is expected to reach a price of $ 8.94 by May 01, 2024. This would represent a 30.23% price increase for DOT in the next 5 days.

DOT Price Prediction Chart

Buy/Sell Polkadot

What has been going on with Polkadot in the last 30 days

Polkadot has been displaying a negative trend recently, as the coin lost -30.19% in the last 30-days. The medium-term trend for Polkadot has been bearish, with DOT dropping by -0.92% in the last 3 months. The long-term picture for Polkadot has been positive, as DOT is currently displaying a 10.82% 1-year price change. On this day last year, DOT was trading at $ 5.96.

Polkadot reached its all-time high price on Nov 04, 2021, when the price of DOT peaked at $ 54.98. The current DOT cycle high is $ 11.86, while the cycle low is at $ 3.59. DOT has been displaying high volatility recently – the 1-month volatility of the coin is at 13.20. Polkadot recorded 12 green days in the last 30 days.

Polkadot technical analysis for today - Apr 27, 2024

The sentiment in the Polkadot markets is currently Bearish, and the Fear & Greed index is reading Greed. The most important support levels to watch are $ 6.72, $ 6.58 and $ 6.45, while $ 7.00, $ 7.13 and $ 7.27 are the key resistance levels.

Bearish sentiment for Polkadot

4 indicators are currently signaling a bullish prediction for Polkadot, while 24 indicators are showing a bearish forecast. With 86% of indicators favoring a negative prediction. This results in an overall Bearish sentiment for Polkadot.

Crypto market is currently experiencing Greed

Currently, the Fear & Greed index is at 70 (Greed), which signals that investors have a positive outlook on the market. The Fear & Greed index is a measure of sentiment among cryptocurrency investors. A “Greed” reading suggests that investors are currently optimistic about the cryptocurrency market, but can also be an indication that the market is overvalued. A “Fear” reading, on the other hand, signals that investors are currently hesitant about the cryptocurrency market, which potentially represents a buying opportunity.

Polkadot moving averages & oscillators

Let’s take a look at what some of the most important technical indicators are signaling. We’ll be going through key moving averages and oscillators that will allow us to get a better idea of how Polkadot is positioned in the market right now.

Period Daily Simple Daily Exponential Weekly Simple Weekly Exponential MA3 $ 6.98 (SELL) $ 6.86 (SELL) - - MA5 $ 7.16 (SELL) $ 6.96 (SELL) - - MA10 $ 7.41 (SELL) $ 7.35 (SELL) - - MA21 $ 7.72 (SELL) $ 7.99 (SELL) $ 3.73 (BUY) $ 7.74 (SELL) MA50 $ 8.83 (SELL) $ 8.46 (SELL) -$ 11.32 (BUY) $ 7.02 (SELL) MA100 $ 8.15 (SELL) $ 8.17 (SELL) -$ 14.32 (BUY) $ 5.38 (BUY) MA200 $ 6.98 (SELL) $ 7.40 (SELL) - -

Period Value Action RSI (14) 39.60 NEUTRAL Stoch RSI (14) 81.82 SELL Stochastic Fast (14) 38.96 NEUTRAL Commodity Channel Index (20) -66.67 NEUTRAL Average Directional Index (14) 35.16 SELL Awesome Oscillator (5, 34) -0.97 NEUTRAL Momentum (10) 0.15 NEUTRAL MACD (12, 26) 0.05 NEUTRAL Williams Percent Range (14) -61.04 NEUTRAL Ultimate Oscillator (7, 14, 28) 53.02 NEUTRAL VWMA (10) 6.93 SELL Hull Moving Average (9) 7.44 SELL Ichimoku Cloud B/L (9, 26, 52, 26) 7.78 NEUTRAL

The Relative Strength Index (RSI 14) is a widely used indicator that helps inform investors whether an asset is currently overbought or oversold. The RSI 14 for Polkadot is at 39.60, suggesting that DOT is currently neutral.

The 50-day Simple Moving Average (SMA 50) takes into account the closing price of Polkadot over the last 50 days. Currently, Polkadot is trading above the SMA 50 trendline, which is a bullish signal.

Meanwhile, the 200-day Simple Moving Average (SMA 200) is a long-term trendline that’s calculated by taking an average of the DOT closing price for the last 200 days. DOT is now trading above the SMA 200, signaling that the market is currently bullish.

The bottom line about this Polkadot prediction

After considering the above factors, we can conclude that the current forecast for Polkadot price prediction is Bearish. DOT would have to increase by 30.23% to hit our $ 8.94 target within the next five days. Moving forward, it will be important to monitor the DOT market sentiment, the key support and resistance levels, and other metrics. However, we have to keep in mind that the cryptocurrency markets are unpredictable, and even the largest crypto assets display a lot of price volatility. For long-term Polkadot price predictions click here.

Disclaimer: This is not investment advice. The information provided is for general purposes only. No information, materials, services and other content provided on this page constitute a solicitation, recommendation, endorsement, or any financial, investment, or other advice. Seek independent professional consultation in the form of legal, financial, and fiscal advice before making any investment decision.

Polkadot (DOT) is motionless, not showing significant momentum in either direction. However, the bearish pattern indicates the possibility of a correction in the near future.

Polkadot is losing investor support

The Sharpe ratio measures the risk-adjusted return of an investment. Higher values ​​indicate the effectiveness of the asset, while low values ​​indicate unprofitability. At the time of writing, the DOT ratio is -4.32, indicating a lack of incentives for traders and investors.

Messari

Technical indicators do not add positivity to the situation. The relative strength index (RSI) attempted to break through the critical threshold of 50, indicating a potential trend change, but retreated back into bearish territory. Although the price of Polkadot is still far from oversold, the failure to gain a foothold above the 50 mark should be considered an additional hint of an upcoming fall.

DOT Price Forecast: Support at $7 will not hold

At the time of writing, DOT is trading within a descending parallel channel, struggling to confirm the $7 level as support.

tradingview

However, given the above signals, the asset is likely to fail and hit the lower border of the channel at $5. Meanwhile, a successful rebound from $7 could refute the bearish thesis. In this case, DOT will test the nearest resistance levels of $8 and $9.

About Polkadot (DOT)

Polkadot stands as a decentralized Web3 platform designed to integrate diverse private and public networks, oracles, and other technological solutions. Its goal is to enable independent blockchains to share information and transactions through the Polkadot relay chain. This ecosystem fosters the creation and interconnection of decentralized applications and services.

The network’s token (DOT) functions as the governance asset of the network, granting owners a level of control over the protocol. Furthermore, a reward mechanism has been devised wherein active and beneficial network participants receive tokens, while those acting against the network’s interests face a reduction in their network stake. Ultimately, the DOT token plays a crucial role in adding and removing blockchains within the Polkadot ecosystem.

The post Polkadot (DOT) at Risk? Exploring the Chances of a Dip to $5 first appeared on The VR Soldier.

Polkadot has been undergoing a prolonged corrective consolidation around the critical $6.5 support level, with the price retracing slightly toward the 100-day moving average.

However, the short-term expectation is to continue this corrective consolidation phase.

Polkadot Price Analysis: Technicals

By Shayan

The Daily Chart

A comprehensive analysis of the daily chart shows a swift rebound near the pivotal support level of $6.5, with the price exhibiting a minor bullish retracement. This suggests a lack of significant market activity and momentum, indicating a cooling down in the futures market.

Nonetheless, the price remains within a crucial price range, bordered by the significant resistance zone of the 100-day moving average at $8.1, aligned with the 0.382 Fibonacci retracement level ($8), and the significant support region of $6.5.

These levels serve as crucial reference points for Polkadot in the short term, and a breakout from this critical range could result in a substantial market movement.

Source: TradingView The 4-Hour Chart

Upon closer examination of the 4-hour timeframe, there is evidence of bullish corrective retracements towards the critical resistance region of the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels, leading to the formation of an ascending wedge, a recognized bearish continuation pattern.

However, the Polkadot price has recently faced rejection from the 0.5 Fib level and experienced a decline, breaking below the lower boundary of the pattern.

This suggests the potential for a continued downtrend, with the price aiming for the crucial support region of $6.

Source: TradingView Sentiment Analysis

By Shayan

The intensity of long and short positions in the perpetual market, along with the potential for significant liquidations, significantly impacts market volatility.

Open Interest, a crucial metric measuring the number of open perpetual futures contracts across cryptocurrency exchanges, provides valuable insights into market sentiment.

With Polkadot’s recent downtrend, it’s notable that the Open Interest metric has mirrored this trajectory, experiencing a notable decline. This synchronization suggests a reduction in activity within the futures market.

Consequently, as the price is currently testing a critical support region, the market seems primed for the resurgence of long positions, potentially signaling a fresh and decisive market movement.

Source: TradingView

This post is powered by Polkadot.

The post Is Polkadot Primed for a Major Move Following Extended Consolidation? (DOT Price Analysis) appeared first on CryptoPotato.

Polkadot’s development activity declined last week, allowing Ethereum, BNB, and others to shine. 

Demand for Polkadot (DOT), Chainlink (LINK), and ETFSwap (ETFS) continue to surge high as the […]

According to CryptoPotato, Polkadot's price has been experiencing a prolonged corrective consolidation around the crucial $6.5 support level. The price has slightly retraced towards the 100-day moving average, indicating a continuation of this consolidation phase. A comprehensive analysis of the daily chart reveals a swift rebound near the pivotal $6.5 support level, with a minor bullish retracement suggesting a lack of significant market activity and momentum. This indicates a cooling down in the futures market.

The price remains within a crucial range, bordered by the significant resistance zone of the 100-day moving average at $8.1, aligned with the 0.382 Fibonacci retracement level ($8), and the significant support region of $6.5. These levels serve as crucial reference points for Polkadot in the short term, and a breakout from this critical range could result in a substantial market movement.

Upon closer examination of the 4-hour timeframe, there is evidence of bullish corrective retracements towards the critical resistance region of the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels. This has led to the formation of an ascending wedge, a recognized bearish continuation pattern. However, the Polkadot price has recently faced rejection from the 0.5 Fib level and experienced a decline, breaking below the lower boundary of the pattern. This suggests the potential for a continued downtrend, with the price aiming for the crucial support region of $6.

The intensity of long and short positions in the perpetual market, along with the potential for significant liquidations, significantly impacts market volatility. Open Interest, a crucial metric measuring the number of open perpetual futures contracts across cryptocurrency exchanges, provides valuable insights into market sentiment. With Polkadot’s recent downtrend, it’s notable that the Open Interest metric has mirrored this trajectory, experiencing a notable decline. This synchronization suggests a reduction in activity within the futures market. Consequently, as the price is currently testing a critical support region, the market seems primed for the resurgence of long positions, potentially signaling a fresh and decisive market movement.

The crypto market is witnessing the rise of BlastUP, which has recently eclipsed the growth […]

StorageHub, a Polkadot parachain, is joining the decentralized data storage revolution, promoting efficiency and network accessibility through decentralized storage solutions.

StorageHub is a public goods parachain, optimized for file-based storage and larger data sets that are challenging to manage for conventional storage solutions.

The network would be designed to serve as a public goods parachain, prioritizing larger data sets and file-based storage while upholding decentralization principles.

Web3 Foundation, developers of Polkadot, said:

“The essence of StorageHub lies in its ability to offer an efficient, decentralized storage option for web3 applications, enabling the storage of large files and data sets without compromising on decentralization principles​​.”

StorageHub Development

The network would be designed to seamlessly integrate with all Polkadot and Kusama parachains while enabling interoperability via cross-chain messaging (XCM). 

See Also: Renzo Protocol’s EZETH Faces Price Depeg Following End of Airdrop Campaign

Thus, users can interact with StorageHub directly or through the existing parachains.

The project unfolds in two distinct phases. The initial eight-month period focuses on foundational development, laying the groundwork for the platform. 

Subsequently, a four-month phase is dedicated to rigorous testing, auditing, and optimization, ensuring reliability and seamless integration of components.

Following the initial development phase, beta versions of StorageHub would be available to the public for testing and feedback.

Polkadot said this phased approach ensures thoroughness and reliability while laying a solid foundation for StorageHub’s deployment.

Decentralized Storage

Decentralized data storage offers an alternative to centralized systems. It allows users to store, access, and share files in a distributed manner, thereby enhancing security, privacy, and scalability.

While centralized storage relies on a single server, decentralized storage spreads data across network nodes, removing the need for third-party data management.

According to recent data, the sector has reached a market capitalization of $7.5 billion, with Filecoin and Arweave being the dominant blockchains.

Notably, the Binance-backed BNB chain is poised to enter the scene by developing BNB Greenfield, a decentralized storage system with smart contract integrations for Web3 applications.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

#Binance #WRITE2EARN

The post Polkadot’s New Storagehub Parachain Targets Improved Data Storage Efficiency appeared first on BitcoinWorld.

This week, we take a closer look at Ethereum, Ripple, Cardano, Shiba Inu, and Polkadot.

Ethereum (ETH)

Ethereum’s downtrend appears to be coming to an end as the price has decided to move sideways above the key support. For this reason, ETH closed the week with a 2% price increase.

This cryptocurrency is now in a range between support at $2,900 and resistance at $3,370. The longer it consolidates here, the more significant the eventual breakout will be.

Looking ahead, ETH did a bullish cross on the daily MACD, which could bring optimism and put bulls back in charge. To confirm a bullish bias, the resistance at $3,370 has to fall.

Chart by TradingView Ripple (XRP)

Earlier this month, XRP failed to hold above 53 cents and fell all the way to 43 cents, which is currently acting as a key support. XRP bounced on this level and managed to close the week with a 6% price increase.

Even if buyers managed to defend the price and keep it above 43 cents, they seem unable to push this cryptocurrency to new highs. The resistance is at 54 cents and may stop any renewed buying interest.

Looking ahead, XRP has been stuck in a large range since late 2023 and was unable to have a major breakout. This has not changed this year so far. Until that happens, don’t expect a significant rally.

Chart by TradingView Cardano (ADA)

ADA managed to find good support at 46 cents and closed the week with a 2.6% price increase. As long as the key support holds, buyers could aim to regain control of the price action.

The current resistance is at 61 cents, and Cardano has not tested this level yet. A relief rally could follow if the support holds. At that point, a test of the key resistance becomes possible.

Looking ahead, if buyers manage to stop the downtrend here, they could attempt to put this cryptocurrency back on an uptrend in the coming month.

Chart by TradingView

Shiba Inu (SHIB)

Shiba Inu closed the week with a 14% price increase, making it the best performer on our list. This is an impressive recovery considering that a week before the price made new local lows.

The key support is found at $0.000025. So far, buyers managed to hold here and defend SHIB from further sell pressure. The resistance is at $0.000037.

Looking ahead, the ideal scenario for this meme coin is to range above the key support and eventually attempt a new rally in May.

Chart by TradingView

Polkadot (DOT)

DOT’s price action is similar to Cardano and managed to find good support above $6.7. For this reason, the price closed the week with a 1.8% price increase.

The correction appears to be coming to an end and as long as the key support holds then buyers can use this period to gather strength for an attempt at the key resistance currently found at $7.7.

Looking ahead, DOT may consolidate here before it attempt to resume its uptrend. This is contingent on the overall market turning bullish.

Chart by TradingView

The post Crypto Price Analysis Apr-26: ETH, XRP, ADA, SHIB, and DOT appeared first on CryptoPotato.

Polkadot has witnessed a reduction in network activity since the beginning of the month. 

Coinspeaker CoinGecko 2024 Q1 Crypto Industry Report, Polkadot Spotlighted

Coingecko recently hosted the comprehensive virtual meeting in which key speakers shared their insights on the trends in the digital currency ecosystem in the first quarter. The meeting also beamed its spotlight on the Polkadot ecosystem as it pursues its major evolutionary trend.

Crypto Market Q1 Spotlight

Recanting the biggest events in the market in Q1, Coingecko’s Head of Research Zhong Yang Chan highlighted the emergence of spot Bitcoin Exchange Traded Funds (ETF) as the major boost for the industry in January.

With the massive Assets Under Management (AUM) from likes of Grayscale Bitcoin Trust (GBTC) and iShares Bitcoin Trust (IBIT) from BlackRock Inc (NYSE: BLK), the ETF market has dragged massive institutional capital into the market. This has in turn helped drive the price of Bitcoin to a new All-Time High (ATH) above $73,000 in March.

Chan also focused on the Ethereum restaking trends that has taken the centerstage. In this sector, Ether.Fi remains the dominant player with EigenLayer also gaining traction as seen in recent times.

This is a developing story, please check back for more updates

 

next

CoinGecko 2024 Q1 Crypto Industry Report, Polkadot Spotlighted

The Polkadot (DOT) price failed to get past the 20-day SMA, which was a key resistance level and has dropped back below $7. 

DOT had seen considerable bullish momentum, with traders hopeful the price could break past the 2-day SMA and go above $8. However, in the past two sessions, sellers have exerted influence and pushed the price down. 

Polkadot (DOT) Back Below $7

DOT has been oscillating between the 200-day SMA at $7, which is acting as support, and the 20-day SMA, which is acting as a key resistance level for most of the ongoing week. The price also has another level of support at around the $6.40 price mark. The price stayed between this level of support and the 200-day SMA for all of last week, with the latter acting as resistance. DOT broke out above the 200-day SMA only on Saturday, when it registered an increase of 8.38% and settled above $7, at $7.24. 

Sunday saw a marginal drop, but with the 200-day SMA now acting as support, DOT could stay above $7 and settle at $7.14. With the 200-day SMA as support, DOT faced several critical resistance levels ahead, which cast some doubt on the sustainability of any bullish movement experienced by the cryptocurrency. Currently, the DOT price is oscillating between the 200-day SMA and the 20-day SMA and has been for all of this week.

Monday saw the price register an increase of 4.62%, allowing DOT to settle at $7.47. However, despite considerable upward momentum over the weekend and on Monday, DOT could not move past the 20-day SMA, with sellers pushing the price down by almost 3% to $7.25. Wednesday saw a highly volatile session as DOT registered a considerable increase initially, with buyers pushing the price higher, allowing it to reach a high of $7.49. However, sellers were able to regain control of the session, pushing DOT back below the 20-day SMA. In fact, DOT registered a drop of 4.55% on Wednesday, dropping below the $7 mark to settle at $6.92. 

Current Scenario 

So, what does the current session hold for Polkadot? DOT is close to its support level of $7 and the 200-day SMA, as seen in the price chart above. The price is currently up by 0.72% as buyers enter the market at this price level. As mentioned earlier, DOT is sandwiched between the 200-day SMA which is acting as support, and the 20-day SMA. Both these levels are crucial reference points for DOT in the near term.

Currently, buyers and sellers are struggling to take control of the session. If bearish momentum persists, we could see DOT drop below the $7 mark and the 2000-day SMA. In such a situation, the price could drop to its second support level of $6.40, as shown in the chart below. If buyers are able to consolidate and take control of the session, DOT could test the resistance at the 20-day SMA once again. DOT must break past the 20-day SMA for any significant upward price momentum. If it does so, we could see DOT test the $8 level.

The indicators show that the MACD is still bullish, indicating that DOT could recover from its current level. Whether the recovery is enough for it to test the 20-day SMA once again remains to be seen. The Relative Strength Index (RSI) is currently at the lower end of the neutral zone. Its proximity to the oversold area indicates we could see buyers enter the market at DOT’s current price level.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.