- Polkadot price is struggling below a key moving average.
- DOT price has formed an interesting candlestick pattern after the breakout.
Polkadot (DOT) is a layer-0 metaprotocol. It underlies and describes a format for a network of layer-1 blockchains known as parallel chains which are also known as parachains.
Based on the technical chart, DOT price has been defending the $6 hurdle throughout this year. At the beginning of this month, the price has taken support on the major support level of $6 and surged by 14%. Last time, the asset price faced resistance from the 200-day EMA and declined by 17% in a week. Currently, the price is struggling near the 200-day EMA for a week.
According to the technical chart, the DOT crypto price has failed to hold the $12 hurdle and performed negatively. Since mid-March, the DOT price has been falling by facing resistance from the trendline.
Turning to the technical indicators, MACD shows that a golden crossover has been generated between the MACD line and the Signal line, it is forming green histograms continuously. RSI is 46.91, sustaining over the RSI-based moving average and heading for the overbought zone. In general, the technical indicators suggest a negative forecast.
Polkadot Price At Major Support Level Again; What’s Next?
$DOT
— il Capo Of Crypto (@CryptoCapo_) May 9, 2024
Currently at major support again, after being rejected from resistance. If this support holds, we should see a move up to the same resistance ($10-$11) and if this levels is broken, then it should reach $15-$17.
Some strong fundamentals for @Polkadot:
-Polkadot 2.0… pic.twitter.com/8D9CUfSASl
DOT crypto price is at a major support level and has recently received a rejection from the resistance level of $10. If it defends the support level, it may gain around 150% over the next few months.
Volume Has Decreased By 50% In A Week
The trading volume has decreased by 50% in a week but the price hasn’t declined accordingly. From the beginning of March, the trading volume has decreased from $1.30 Billion to $170 Million dragging the price with it. The DOT price was trying to gain bullish momentum but trading volume was not supporting at the time of writing.
Enormous Changes Detected In The Development Activity
According to the given data, the development activity has decreased by around 50% from mid-April but the price has remained constant. If the development activity increases, the price may gain positive momentum.
Polkadot Prediction; Will It Manage To Defend The Major Support Level?
At press time, the Polkadot price traded at $7.10 which is up by 0.87% in an intraday session. The market capitalization is $10.21 Billion and according to the market cap, it ranks 14th in the cryptocurrency market. The 24-hour trading volume is $170 Million and the circulating supply is 1,437, 953,431 DOT.
Polkadot crypto price has triggered a breakout from the trendline and has formed a hammer candlestick on retest. If the buyers show interest and lift the price over the 200-day EMA, buyers may look for the last swing high of $10 hurdle.
On the contrary, if the price fails to defend the major support level of $6 and sustains, bearish momentum can be expected. Below this zone, it may be difficult for the buyers to bounce back.
Conclusion
Polkadot price is currently struggling near the 200-day EMA and is facing resistance from the trendline. The technical indicators suggest a negative forecast, and the trading volume has decreased by 50% in a week. However, the recent breakout from the trendline and the formation of a hammer candlestick on retest may provide some hope for the buyers. It remains to be seen whether the buyers can lift the price over the 200-day EMA and defend the major support level of $6. If they can, the last swing high of $10 hurdle may be the next target. On the other hand, if the price fails to defend the support level of $6, bearish momentum can be expected.
Technical Levels
According to the technical chart, the major support level is $6 and the resistance level is $7.40. Another support level would be $5.10 and resistance $9.70.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.