As the price drops to $7.55, Polkadot (DOT) price analysis suggests that the trend remains bearish.
Polkadot Price Analysis Reveals Downward Trend
DOT/USD has looked for support at around $7.49
DOT/USD is finding resistance at $7.74
Previously trading around $7.74, Polkadot is now looking for support around $7.49.
DOT/USD price is still facing resistance at $7.74, but if it breaks below $7.49, it could find support at $7.32. and $7.05. If it drops below that, it could find support there.
Around these levels, Polkadot could feel some selling pressure, but if it manages to sustain above $7.49, it could start to see some buying interest.
The fact that DOT has a multitude of parachains supporting its decentralized web goals has helped it stay relevant in the cryptocurrency ecosystem.
According to Coingecko data, DOT is trading at $6.93, down 5.5% over the last seven days.
Santiment data shows that after August 20, DOT’s development activities increased dramatically. Its price, however, has not held up so well, falling 11.31 percent over the past week.
Polkadot Announces Deployment of New Parachains
The multi-chain network has shown that the Polkadot architecture is not as constrained as many people may have thought. Furthermore, Polkadot recently announced the rollout of many new blockchains with ParityTech.
The statement states that new parachains will be implemented to enable organization. If these parachains are successfully activated, the Polkadot community will be able to rule without having to wait forever for third-party approval.
Has DOT’s position improved as a result?
Although the short-term outlook for the DOT/USD market appears to be bearish, a breakout of the current consolidation range could see the market move in the direction of 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, which suggests that the bulls may soon recover.
The market is currently in a consolidating condition 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 are anticipated to continue to decline.
According to the DOT Price Research 4-hour price chart, the market has been in a downtrend for the past four hours.
The market had made a move towards $8.00 but was quickly rejected at around the $7.85 mark.
The market is currently consolidating, and if it were to break out of its current range, it could soon go one of two directions – towards $8.00 or $7.32.
The probability of DOT breaking above its current levels increased as long as the buyer’s momentum maintained its advantage over the seller’s scenario.
The current Polkadot network parachutes seem to be in their prime, despite the lack of obvious recovery indicators. These performances, according to PolkadotInsider, have caught the attention of investors.
Investors can infer from these measures that DOT may be experiencing increased interest and momentum.
Total DOT Market Cap at $7.63 Billion on Weekend Chart | Source: TradingView.com Money24H Featured Image, TradingView.com Chart
This post Polkadot Dev’t activity increased in the last 7 days, despite the constant drop in the DOT price
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