Over the last several days, Polkadot‘s price has experienced a noticeable decline. Fortunately, it has encountered crucial buying interest around the $6 threshold. At present, its value hovers around $6.54.
During the past week, DOT‘s value hasn’t advanced and has stayed under the significant $7 threshold. The cryptocurrency’s price fluctuations have been minimal.
Polkadot (DOT) Locked Within Decisive Range
In the recent past, DOT has managed to halt its downward trend to some degree. The daily chart indicates minimal price fluctuations and a period of sideways drift. Towards the end of last week, DOT experienced a major decline, causing the price to dip below the 200-day moving average and reaching a low of $5.72 on Saturday. On Sunday, there was a slight recovery, but the price failed to surpass the 200-day moving average and closed at $6.87 after finding stability around the significant $6 price level.
On Monday, DOT reached a peak of $7.21, but then sellers took over and drove the price back below its 200-day moving average to $6.70. The next day, Tuesday, DOT bounced back slightly and ended at $6.71 after touching a low of $6.37. The support level at $6 has made it tough for bears to push the price lower, suggesting that DOT may rebound. However, DOT continued to decline on Wednesday by 1.79%, and currently, it is down by over 1% or $0.12 to $6.53 in today’s trading.
The price of DOT is following the trend of other cryptocurrencies, with Bitcoin and Ethereum both experiencing losses. Bitcoin decreased by approximately 4% in the last 24 hours, while Ethereum dropped more than 3.5%. Over the past week, a pessimistic outlook has taken hold of the markets, causing DOT’s price to decline by nearly 25%.
Could We See A Price Breakout?
Previously stated, DOT is situated between the robust support at $6 and the challenging resistance at $7, represented by the 200-day Simple Moving Average. If bearish trends prevail, DOT may descend to its stronghold at $6. A further decline could potentially push the price below $6, aiming for $5.50 or even $5. A reversal in this trend might bring bullish sentiments back, allowing DOT to challenge the resistance at $7. If it successfully surpasses the 200-day SMA, expect a significant uptrend that could potentially reach the crucial $10 mark if it manages to breach the $8 and $9 levels, which serve as resistance from the 20-day and 50-day SMAs respectively.
At present, many signals, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), are showing bearish trends, suggesting that DOT may continue to decline in value. Nevertheless, it’s essential for DOT to remain above its support level at $6 if it is to bounce back in the near future.
In the past, fluctuations in crypto prices have significantly influenced the perpetual futures market, particularly for Polkadot. Examining this market can provide insights into Polkadot’s potential price trends in the near future. One method to accomplish this is by studying Polkadot’s Open Interest chart. This graph represents the quantity of open perpetual futures contracts across various exchanges. An elevated Open Interest signifies heightened volatility, while a diminished Open Interest indicates reduced market turbulence.
Examining the graph before us, it’s clear that both Open Interest and DOT‘s price have experienced a notable decrease. This downturn aligns with recent geopolitical conflicts in the Middle East, causing considerable market instability for cryptocurrencies. At present, the market undergoes a pause, but increased buying and selling positions in futures trading could trigger heightened action and fluctuations.
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2024-04-18 11:24