Polkadot (DOT) Under Sell Pressure As Bears Retaliate
Over the last week, Polkadot (DOT) has had trouble gaining traction, falling by 8.41% from April 30 to May 4. However, the price is trading sideways and there might be a modest recovery next week as investors take advantage of this dip to acquire more DOT.
According to CoinMarketCap, Polkadot ranks #11 among all cryptocurrencies with a current market price of $5.75. Polkadot’s 24-hour trading volume is up by 29.40% in 24 hours, while its market cap has also gained 1.57% within the same time frame.
Polkadot’s (DOT) Fear & Greed Index today is 46. This level indicates that bulls are pushing the price up gradually, but the bears are still in their positions.
Over the last few days, Polkadot (DOT) has been showing some bullish signs; so expect a possible recovery within the next few weeks as investors take advantage of the current momentum.
DOT Price Analysis
Polkadot trades between the 200-day simple moving average and the 50-day simple moving average (SMA). This indicates that the market is in a neutral or consolidation phase.
The price does not trend significantly in either direction. During this phase, traders and investors may use the 50-day and 200-day SMAs as support and resistance levels while trading.
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However, if the price exceeds the 50-day SMA, it could indicate a short-term uptrend, giving investors a buying opportunity.
The Relative Strength Index (RSI) level of DOT is 41, indicating that its market is heading towards the neutral zone and there’s indecision among investors.
But the 24-hour volume indicator shows that the trading activity is gradually growing, which could mean investors are building interest in the coin. This may increase liquidity and potential price movement in favor of DOT.
The chart above shows the key support and resistance levels of Polkadot (DOT). Polkadot now trades between $5.587 and $6.07 primary support and resistance levels. DOT’s first important resistance level is $6.07. If the price rises above this level, the next resistance levels are $7.970.
Future Developments For Polkadot
Many upcoming developments on the Polkadot network might push its adoption, usage, and price in the nearest future.
For instance, the community voted to onboard a Bridge Hub system parachain to Polkadot. Also, Mythical Games plans to migrate its Mythical Chain to the Polkadot blockchain.
Furthermore, the developers are discussing establishing Polkadot Hubs in South-East Asia, with Bali and Indonesia as the first focus.
These development proposals and discussions depict the team’s effort to enhance the network’s efficiency, connectivity, and interoperability. In time, more adoption and activities may affect DOT prices positively.
Featured image from Pixabay and chart from Tradingview.com