As the price drops to $7.55, Polkadot (DOT) price analysis suggests that the trend is still bearish.
- Polkadot Price Analysis Reveals a Downtrend
- DOT/USD sought support at around $7.49
- DOT/USD encounters resistance at $7.74
Previously trading at around $7.74, Polkadot is now looking for support at around $7.49.
DOT/USD price is still facing resistance at $7.74, but if it breaks below $7.49, it might find support at $7.32. and $7.05. If he drops below that, he might find support there.
Around these levels, Polkadot might be feeling some selling pressure, but if it manages to hold above $7.49, it might start to see buying interest.
The fact that DOT has a slew of parachains underpinning its decentralized web goals has helped it stay relevant in the cryptocurrency ecosystem.
According to data from Coingecko, DOT is trading at $6.93, down 5.5% over the past seven days.
Santiment data shows that after August 20, DOT development activity increased significantly. Its price, however, hasn’t held up so well, dropping 11.31% over the past week.
Polkadot announces the deployment of new parachannels
The multi-channel network showed that the Polkadot architecture isn’t as restricted as many people might have thought. More so, Polkadot recently announced the deployment of many new blockchains with ParityTech.
The statement says that new parachains will be put in place to enable the organization. If these parachains are successfully activated, the Polkadot community will be able to govern without having to wait indefinitely for approval from outside parties.
Has the DOT’s position improved as a result?
Although the short-term outlook for the DOT/USD market appears bearish, a break from the current consolidation range could see the market heading towards the $8.00 level soon.
The signal line is moving above the candlesticks, which means that the MACD indicator is currently in a bearish zone.
At 47.75, the RSI indicator for DOT/USD is approaching oversold territory, suggesting that the bulls may begin a recovery soon.
The market is currently in a state of consolidation as the upper Bollinger Band is at $8.19 and the lower Bollinger Band is at $7.51.
DOT/USD price continues its bearish streak
DOT/USD 4-Hour Price Chart: Prices should continue falling.
According to the 4-hour price chart from DOT Price Research, the market has been trending down for the past four hours.
A move towards $8.00 had been made by the market, but was quickly rejected at around $7.85.
The market is currently consolidating, and if it were to break out of its current range, it could soon go in one of two directions: towards $8.00 or $7.32.
The likelihood of DOT breaking above its current levels has increased as long as the momentum of the buyer has maintained its edge over the seller scenario.
The current Polkadot network parachains appear to be at their best, despite the lack of obvious rally indicators. These performances, according to PolkadotInsider, caught the attention of investors.
Investors can infer from these metrics that DOT may see increased interest and momentum.
DOT total market cap at $7.63 billion on the weekend chart | Source: TradingView.com Featured image from Money24H, chart from TradingView.com