Polkadot has been tracking the general pattern of the crypto-market over the past few days. The $58,200 Bitcoin slide to test $46,000 saw DOT record losses of 28 percent, with the alt falling from $42 twice in 2 days to test $29.
Charles Hoskinson insisted in related news that there is room on the market for more than one intelligent contract network, adding that Ethereum, Polkadot, and Cardano would co-exist concurrently.
Polkadot 1-hour chart
In fast succession, the $29-level was checked twice, with the same keeping as help at press time. Some areas of price support, based on the DOT’s drop from $42.28, were demonstrated by the Fibonacci Retracement levels to see a candlewick down to $26.8.
In general, testing the same area many times weakens the area as one of either supply or demand, and this also seemed to be true for the $29 field. Another re-test could see a higher price to stave off more bearish pressure, but the signs seemed to point to more losses.
The RSI stayed at or below 50 to illustrate that momentum over the past week has, for the most part, been in favour of the bears, barring a few bounces. For the same span of time, the OBV also revealed that selling volume greatly outweighed purchasing volume.
It was found that the Amazing Oscillator was under zero. Longer timeframes like H4 and H6 revealed that the bears of the market were in charge of the market.
The retracement level of 50 percent for DOT’s move was at $33.47. This is the amount that would have to rise above the price to emphasise that DOT was on the road to recovery.
A jump below $29 would possibly see DOT fall to $26, while another $29-region bounce would have to climb above $33.4 before the bulls can be said to have any market power. The momentum was strongly in favour of the bears in the short and medium term, especially since the sales volume was very evident in the market.
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