Polkadot Price Analysis: Bearish Forces Continue To Melt Price?
Polkadot Price Analysis: Bearish Forces Continue To Melt Price?
Plokadot was exchanging close to $4.05 losing 2.43% a day.
The RSI and 14 day SMA line showcased a bearish crossover indicating sellers' domination in the near term.
Despite a strong recovery and improving sentiments in the crypto sector, Polkadot kept on melting down. Bitcoin has edged close to the 60K mark indicating a renewed confidence among investors and triggering a buy signal in several altcoins.
however, Polkadot has failed to benefit from the improving market sentiments. At the time of writing, Polkadot was exchanging hands close to $4.05 recording an intraday loss of 2.05%. Currently at $6.048 Billion, the market cap of Polkadot has dropped by nearly 6% a week, due to the impact of negative sentiment.
However, despite the downtrend, the price still hovers above the September lows, with investors anticipating a reversal. It remains to be seen whether the DOT bulls may register their presence to defend the monthly lows and make an effort for a price improvement.
Derivatives Traders Liquidating Their Positions
Polkadot price has been under the control of bears since mid March. During the period, DOT has plummeted nearly 66% from its annual high. The key EMAs have been acting as a dynamic resistance as the price has suffered rejection multiple times.
<iframe title="Santiment Chart: Total Open Interest in USD (DOT), Price (DOT)" width="800" height="425" src="embed.santiment.net/chart?ps=polkadot-new&pt=DOT&df=2024-06-17T18:30:01.070Z&dt=2024-09-18T18:29:59.070Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>
In tandem with the price drop, the Open interest contracts have noted a liquidation on the long side. As per Santiment, the open interest contracts have dropped from $112 Million to $105 Million losing 6% In the last couple of sessions.
Moreover, the daily transaction volume has surged by 21% a day to $122.65 Million. The volume to market cap ratio at 1.99% suggests low volatility in the crypto.
Polkadot Bulls May Look To Defend The Lows
Despite the recent drop, DOT investors remain optimistic about a potential buying from the monthly lows. Interestingly, the selling pressure has not invalidated a consolidation near the demand. Instead the accumulation has intensified for nearly 45 days adding hopes of a certain buying to the investors.
Moreover, the trend outlook is bearish in the long term which has been a concern for the buyers. DOT price lags nearly 44% below the 200 day exponential moving average indicating a bearish control.
Polkadot Price Prediction: Is September Low In Danger?
Despite the recent efforts by the bulls and improved sentiments in the broader market, Polkadot has been unable to showcase recovery. recently, the bulls attempted for a recovery, however suffered rejection and price declined losing all the gains.
while applying, Fibonacci retracement tool from the recent swing high at $5.15 to recent swing low at $3.8, the golden zone was observed between $4.4 to $4.6 level. The golden zone is crucial for the price to maintain a particular trend.
Looking precisely over the charts, it was observed that the same area acted as a reversal zone for Polkadot price. A rejection from the golden zone of Fibonacci validated the presence of sellers at the higher levels. on the lower side, a breakdown below the recent consolidation may indicate a bearish continuation.
Additionally, At the time of writing, RSI line and 14 day SMA line showcased a death crossover indicating a bearish continuation in the short term.
Plokadot was exchanging close to $4.05 losing 2.43% a day.
The RSI and 14 day SMA line showcased a bearish crossover indicating sellers' domination in the near term.
Despite a strong recovery and improving sentiments in the crypto sector, Polkadot kept on melting down. Bitcoin has edged close to the 60K mark indicating a renewed confidence among investors and triggering a buy signal in several altcoins.
however, Polkadot has failed to benefit from the improving market sentiments. At the time of writing, Polkadot was exchanging hands close to $4.05 recording an intraday loss of 2.05%. Currently at $6.048 Billion, the market cap of Polkadot has dropped by nearly 6% a week, due to the impact of negative sentiment.
However, despite the downtrend, the price still hovers above the September lows, with investors anticipating a reversal. It remains to be seen whether the DOT bulls may register their presence to defend the monthly lows and make an effort for a price improvement.
Derivatives Traders Liquidating Their Positions
Polkadot price has been under the control of bears since mid March. During the period, DOT has plummeted nearly 66% from its annual high. The key EMAs have been acting as a dynamic resistance as the price has suffered rejection multiple times.
<iframe title="Santiment Chart: Total Open Interest in USD (DOT), Price (DOT)" width="800" height="425" src="embed.santiment.net/chart?ps=polkadot-new&pt=DOT&df=2024-06-17T18:30:01.070Z&dt=2024-09-18T18:29:59.070Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>
In tandem with the price drop, the Open interest contracts have noted a liquidation on the long side. As per Santiment, the open interest contracts have dropped from $112 Million to $105 Million losing 6% In the last couple of sessions.
Moreover, the daily transaction volume has surged by 21% a day to $122.65 Million. The volume to market cap ratio at 1.99% suggests low volatility in the crypto.
Polkadot Bulls May Look To Defend The Lows
Despite the recent drop, DOT investors remain optimistic about a potential buying from the monthly lows. Interestingly, the selling pressure has not invalidated a consolidation near the demand. Instead the accumulation has intensified for nearly 45 days adding hopes of a certain buying to the investors.
Moreover, the trend outlook is bearish in the long term which has been a concern for the buyers. DOT price lags nearly 44% below the 200 day exponential moving average indicating a bearish control.
Polkadot Price Prediction: Is September Low In Danger?
Despite the recent efforts by the bulls and improved sentiments in the broader market, Polkadot has been unable to showcase recovery. recently, the bulls attempted for a recovery, however suffered rejection and price declined losing all the gains.
while applying, Fibonacci retracement tool from the recent swing high at $5.15 to recent swing low at $3.8, the golden zone was observed between $4.4 to $4.6 level. The golden zone is crucial for the price to maintain a particular trend.
Looking precisely over the charts, it was observed that the same area acted as a reversal zone for Polkadot price. A rejection from the golden zone of Fibonacci validated the presence of sellers at the higher levels. on the lower side, a breakdown below the recent consolidation may indicate a bearish continuation.
Additionally, At the time of writing, RSI line and 14 day SMA line showcased a death crossover indicating a bearish continuation in the short term.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.