Polkadot Price Analysis: DOT Looks To Recover After Challenging Week

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On Friday and Saturday, the price of Polkadot (DOT) took a hit from bears, causing it to drop by nearly 14% and over 11%. Currently, DOT is attempting to bounce back.

On Sunday, the price bounced back with a 7.54% gain, yet it failed to surpass the 200-day Simple Moving Average (SMA), serving as a barrier for further advancement.

Can Polkadot (DOT) Continue Upward Momentum

Last week, Polkadot (DOT) experienced a predominantly downward trend as pessimistic feelings took hold, causing its value to dip as low as $5.74 on Saturday. Following a recovery, DOT ended the weekend at $6.38. The downturn also led DOT to fall beneath its 200-day Simple Moving Average (SMA) on Saturday. However, Sunday brought about a change in fortune for DOT, with its value increasing by 7.54%. Despite encountering resistance from the 200-day SMA at $6.86, DOT has continued to climb during current trading sessions. It is now up by 3.53% and has surpassed both the 200-day SMA and the $7 mark, currently sitting at $7.10.

Could DOT maintain its current recovery trend and witness continued bullishness as we enter a new week? Let’s examine some signs to find out. At present, the Parabolic Sar indicator suggests a bearish trend. Yet, DOT surpassing its 200-day Simple Moving Average (SMA) at $7 could provide price support and enable it to approach $7.50. If this occurs, DOT may encounter resistance at $8 and $8.45, where the 20-day SMA might act as a barrier.

On Saturdays, the Relative Strength Index (RSI) of DOT dropped below 30, suggesting that the digital asset was overbought. In response, investors bought DOT and drove its price up. Currently, the RSI hovers around 35, yet being so close to oversold territory may mean that DOT’s price could rebound further – at least temporarily. The Moving Average Convergence Divergence (MACD) is presently bearish but might switch to bullish if DOT manages to maintain its upward trend.

Volume Takes Sharp Fall

The data from transactions reveals a 42% decrease in DOT trading activity. It seems that although some new buyers are entering the market, many investors may be keeping their DOT holdings and waiting to observe market developments before making further moves.

An Important Week For Polkadot (DOT)

Although there have been some subdued reactions in the crypto market, Polkadot has experienced noteworthy advancements during the last week. A notable surge in new users was recorded, bringing the total number of wallet addresses to approximately 600,000 by March’s end. Nearly half of these newcomers, around 253,000, joined Moonbeam. Furthermore, over 191,000 fresh addresses were added directly to Polkadot. The user base expansion also led to an uptick in unique accounts, reaching a total of 5.59 million.

At the Polkadot governance meeting, it was revealed that they were thinking about a proposal to publicize the network at the Paris Olympics by spending $160,000 on branding bikes. The community went ahead and made a decision through an on-chain vote, choosing IndyCar racing champion Conor Daly as Polkadot’s representative for the Indianapolis 500. This is a groundbreaking event as it signifies the first time a significant athlete sponsorship has been chosen using blockchain technology and community voting.

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2024-04-15 11:15