Polkadot Trades Sideways, Key Levels To Monitor For DOT
10 April 2023 - 4:00PM
NEWSBTC
The price of Polkadot has been trading sideways within a narrow
range of $5.7 to $6.6 in recent days, with a slight uptick of only
0.7% in the past 24 hours indicating consolidation. The weekly
chart shows a decline of 1.7%, and the technical outlook is bearish
with decreasing demand and accumulation. Although buying pressure
is still present above the $6.10 mark, the ongoing consolidation
has caused a decline in buyers’ confidence. If buyers fail to act
soon, Polkadot could drop below its current price level and reach
its local support level. Similar to Polkadot, other altcoins have
also exhibited a lack of decisive price action due to Bitcoin’s
indecisive movement between $26,800 and $28,800 over the past few
weeks. Should Bitcoin continue to trade in this range, altcoins may
remain stuck under their immediate resistance levels. The market
capitalization of DOT declined to indicate a rise in demand for the
altcoin. Polkadot Price Analysis: One-Day Chart At the time of
writing, Polkadot’s native token, DOT, was trading at $6.18, with
immediate overhead resistance levels at $6.30 and $6.60. If DOT
manages to break past the $6.30 resistance level, where selling
pressure is currently intense, it could potentially attempt to
trade above the $6.60 mark. However, a decline from the current
level would bring Polkadot down to $6.10, which could bring bears
back into the market and potentially drag the altcoin down to $6.
In the previous session, the amount of Polkadot traded declined,
which indicated a fall in demand for the altcoin on the one-day
chart. This, coupled with the ongoing consolidation, has caused a
decline in buyers’ confidence. Technical Analysis In the previous
session, buying strength in the Polkadot market had been attempting
to recover. However, despite these efforts, the DOT token was
trading laterally, failing to break out of its current range. At
the time of writing, the Relative Strength Index (RSI) had fallen
below the half-line, indicating that sellers were currently
outnumbering buyers in the market. Nevertheless, with just a slight
push from the buyers, DOT could potentially rebound and travel back
into the positive buying zone. Similarly, the price of the asset
had also dropped below the 20-Simple Moving Average (SMA) line.
This reading suggested that sellers were driving the price momentum
in the market, with demand falling on the daily chart. However, the
20-SMA can act as a support level for the asset in the event of a
further drop in price. As the buying strength declined, DOT began
exhibiting sell signals on its daily chart. The Moving Average
Convergence Divergence (MACD) displayed red signal bars, indicating
a sell signal for the altcoin. This suggested that the price
momentum was gradually shifting in favor of the bears. Meanwhile,
the Bollinger Bands, which reflect price volatility and
fluctuations, remained narrow, pointing towards range-bound
movements for DOT in the upcoming trading sessions. Featured Image
From UnSplash, Charts From TradingView.com
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