There are a number of altcoin projects that have managed to carve a niche in crypto space, and Polkadot [DOT] is one such project that has been strongly accepted by investors and has been doing well as investing thanks to its rising price.
At the time of writing, however, DOT’s value fell and the coin was actually valued at $26.88 with a market capitalisation of $23.6 billion.
Polkadot one-hour chart
The above graph shows that the valuation has been appreciating for a long time but has been confronted by bears on the market in the recent past. After consolidating its price for a while over $26, the value of DOT started to shrink, creating a descending channel.
The above chart noted that the value broke down to as low as $23.09, after which it bounced back up. At the time of publishing, DOT was trading at $26 and could stay between $24 and $26 in the short term.
As the valuation of the digital asset was diminishing, the market pressure on revenue became apparent. The relative strength index was heading into the oversold region as the value started to drop. The breakdown did not drive it to the oversold zone and saw a bounce towards balance.
Due to such high activity, the Bollinger bands remained divergent, suggesting high market uncertainty.
However, as the price tried to climb higher, we’re seeing the buoyant momentum return to the market.
Polkadot’s value will continue to rise, but in the short term, the consolidation process will be between $25 and $26. The market has been volatile and traders will want to be careful of evolving market patterns.
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