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Following a time of high uncertainty in the cryptocurrency industry, the majority of altcoins are now attempting to regain their price positions. Polkadot is one such altcoin, with DOT showing a downward slope on the charts due to the competitive environment around it.
At press time, the seventh-largest altcoin, with a market capitalisation of $39.53 billion, was trading at $42.53.
Polkadot hourly chart
Polkadot’s hourly chart showed that the altcoin’s value was approaching its immediate resistance level of $42.78. And if the cryptocurrency’s price wants to re-evaluate this resistance level, it may turn around and test the support at $41.59.
The altcoin’s price was sloping lower inside the descending channel at the time of publication.
The price of DOT found help at $41.59 before rising to the resistance level of $42.78. However, market indicators indicated that the price would not be able to remain at this pace for long and would soon fall again. The market’s volatility was strong, as shown by the diverging Bollinger bands.
The Signal line and the 50 moving average, on the other hand, were about to move higher above the candlesticks, signalling that the price was falling. According to the findings, buyers and sellers are still competing for supremacy in the DOT market.
Furthermore, the Relative Strength Index discovered that the selling pressure was a few points ahead of the market’s buyers. Sustained selling pressure, as shown by the Awesome Oscillator, could drive the price lower, as could the momentum that has been building towards the sellers’ end.
Crucial levels to watch out for
Take profit: $41.59
Risk to Reward: 1.33
Polkadot’s market was seeing an increase in selling pressure at the time of publication. This might cause the altcoin’s price to fall, with the coin hitting the support level of $41.59 once again, providing some advantage to short-traders.