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When the new week began, the Bitcoin market witnessed a sell-off. This decline in value was also observed in the altcoin industry. Polkadot [DOT] was one such big altcoin that experienced a sharp drop in price since entering the market.
DOT was trading at $36.94 at the time of publication, with a market cap of $34.07 billion.
Polkadot one-hour chart
Polkadot’s valuation was increasing and had broken through the opposition. However, as the market started to consolidate above $38.85, a selling momentum formed, resulting in a sharp decline in the value of DOT.
The commodity lost almost 10% of its worth in 12 hours, but it was now seen rising higher. The new market is competitive, and another price swing can be apparent until it settles.
The Bollinger Bands were widely diverged, reflecting the erratic market change of the previous day. As a result, the stock was highly unpredictable. Meanwhile, as the signal line passed over the candlesticks, the dropping value opened the way for bears to take the lead. The 50-day moving average also passed over the price bars, showing the effect of the sell-off on the valuation of DOT.
As the digital asset recovers, the relative strength index observed that DOT bounced back after reaching the oversold zone. The line, however, showed that it has remained close to the oversold level. As a result, the market showed a pessimistic trend that was becoming increasingly bearish.
The Polkadot market is already highly unpredictable. Overnight, the digital commodity lost more than 10% of its worth. It would have to rebound from the present trading trend in order to see a stock swing in favour of retail traders.