Polkadot (DOT) is struggling with a falling resistance trend line, having experienced a sustained decline since February. In the month of October, the digital asset declined by 10%, falling from $4.3 to $3.6.
Market analysts are warning that further losses are likely if the current bearish pressure continues. However, a slight glimmer of hope emerged when DOT attempted a reversal at $3.6, indicating the possibility of overcoming the overhead resistance hurdle.
Currently, the price of DOT is $3.74 according to CoinGecko, which represents a slight decline of 0.3% over the past 24 hours and a decline of 2.8% over the seven-day period.
DOT’s struggle for recovery
The absence of horizontal support below the current price highlights the importance of Fibonacci retracement levels in forecasting potential downside areas. Specifically, a Fibonacci retracement tool was used, including the low of $4.8 on August 29 and the recent low of $3.6 on October 12. This analysis showed that the path to recovery for DOT faces significant obstacles at 23.6% Fib ($3.9) and 38.2% Fib ($4).
Making matters more complicated, the $4 level, which serves as the second resistance target, coincides with the daily bearish order block (OB). This confluence suggests that breaking the $3.9 barrier may prove challenging for the bullish momentum.
Polkadot developers standing strong
Despite the continuous decline in prices, the developers of the Polkadot ecosystem remain steadfast and unwavering. This unwavering commitment is evident from the substantial Polkadot active developers, which are currently hovering near all-time highs. This figure is notably higher than the levels recorded in 2021 when the altcoin price reached its peak.
The total crypto market cap is currently $1.06 trillion. Chart: tradingview.com
In a recent announcement, Parity Technologies, a key player in blockchain infrastructure, revealed its strategic shift towards decentralization within the Polkadot (DOT) ecosystem. The upcoming organizational changes are expected to open a new chapter for the company in the coming months.
Polkadot’s cutting-edge technology advancements
Amidst the spreading rumours, Parity Technologies quickly dismissed speculations of mass layoffs of around 300 employees during a recent off-site gathering in Majorca. The company stressed that any adjustments to the workforce will be gradual and in line with its progressive decentralized strategy.
Emphasizing their dedication, Parity underlined their commitment to advancing Polkadot’s cutting-edge technology. Their main focus remains on enhancing the developer experience and fostering a resilient developer community within the Polkadot ecosystem, ensuring its continued growth and innovation.
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Featured image from Mudrex
source: www.newsbtc.com