Polkadot (DOT) has continued its downward trajectory, with the price still below the $7 mark as sellers dominate the market.
DOT had considerably recovered over the previous weekend, with the price reaching $7.47 by Monday, but has since registered a notable decline.
Polkadot (DOT) Caught Between $6.40 and $7
Polkadot has continued its poor performance, failing to gain any momentum of note, with its value continuing to slide. The cryptocurrency has registered a decline of just over 30% in the past month, dropping below the crucial $7 mark as well. The drop comes after DOT registered a significant increase over the previous weekend, leading many to believe it could move toward the $8 price level. The increase of 8.38% on Saturday helped DOT cross the 200-day SMA, which was acting as resistance at this point, pushing it above $7 to $7.24. Sunday saw a low of $6.97, but DOT recovered, ending the session above $7 at $7.14.
Monday saw DOT continue its upward trajectory, with the 200-day SMA now acting as support. However, it could not get past the 20-day SMA and settled at $7.47. With the 20-day SMA acting as a strong resistance level, DOT fell in the red on Tuesday, dropping by nearly 3% to $7.25. However, with the 200-day SMA acting as support, the price remained above $7. Wednesday saw the price test the resistance, reaching a high of $7.49, but could not break past the 20-day SMA. Sellers took control of the market and pushed the price below the 200-day SMA to $6.92, breaking DOT’s support level.
With the 200-day SMA now acting as resistance, DOT remained in the red on Thursday and Friday. Thursday saw a highly volatile session that saw the price drop to $6.69 before recovering and settling at $6.86, a decline of 0.87%. Friday registered a drop of 1.46% before DOT registered a marginal increase of 0.59% on Saturday. However, with the 20-day SMA falling below the 200-day SMA, bearish sentiment increased on Sunday, with DOT dropping to $6.73.
Current Scenario
Let’s look at the current situation and what the indicators are saying. DOT is facing strong resistance at around the $7 mark, with the 20-day SMA and the 200-day SMA completing a bearish cross. As a result, DOT is down by over 3% during the current session and is trading at $6.52. There is a strong level of support around the $6.40 price level, so we can see the price stabilize at this level. However, should this level be breached, DOT could drop to $6.
However, the RSI is around 40, indicating subsequent room for bullish momentum should buyers take control of the market. The MACD is also bullish, indicating we could see DOT stabilize around its support level, allowing buyers to enter the market and prop up the price.
Can Network Milestones Help DOT Recover?
Additionally, a top analyst has highlighted the addition of several features on Polkadot that could act as a catalyst and reverse its current bearish trajectory. One of these catalysts is Polkadot founder Gavin Wood, who introduced the Join-Accumulate Machine (JAM) protocol. JAM is a significant development that combines the features of Polkadot and Ethereum. Additionally, Polkadot is also in advanced discussions for an $8.8 million sponsorship deal with Inter Miami, a move that could help the protocol garner significant eyeballs.
“Gavin Wood, the founder of the Polkadot protocol, has unveiled a new Gray Paper outlining the forthcoming Join-Accumulate Machine (JAM) upgrade for the network. This announcement occurred during Wood’s presentation on Polkadot’s future.”
Polkadot’s leading parachains have also witnessed considerable developments, with the Acala Network announcing its Sinai upgrade. Beyond these technical features, the analyst also stated that Polkadot, thanks to its multichain architecture, could promote AI scalability.
“The sharded multichain setup eliminates transaction bottlenecks and increases more efficient AI computations!”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.