The worldwide cryptocurrency market has not fared too properly in July to date. The month began off with a bullish week however costs started to step by step decline on account of a scarcity of sustained shopping for strain. Whereas some alts have been in a position to cope up with rising promoting strain, the identical can’t be stated for Polkadot.
The digital asset noticed a 25% drop in worth over the past 10 days alone, however losses had been saved in verify at a defensive position of $11.6. On the time of writing, DOT held the ninth spot within the crypto rankings with a market cap of $12.4 Billion.
Polkadot 12-hour chart
There weren’t many bullish takeaways from DOT’s chart. Whereas costs maintained a horizontal channel and traded principally between $14-17 since end-June, a breakdown resulted in a gradual 16% fall in direction of a help mark of $11.7. The truth is, its fall on the aforementioned degree represented a 6-month low for the digital asset.
On the plus facet, the formation of a Doji candlestick indicated an upcoming reversal that noticed DOT register some bullish motion over the previous couple of days. Focus now shifted on the higher trendline of DOT’s down-channel- a area that coincided with twenty second June’s swing low of $13. A profitable shut above this level would doubtless push DOT again in direction of $13.8-14 which had now flipped to resistance. Such a transfer would spotlight positive aspects of an extra 9% from the press time degree.
Relative Energy Index confirmed oversold situations available in the market which triggered a reversal in costs. A sustained rise in direction of the half-line would point out rising shopping for strain and a strengthening pattern. The On Steadiness Quantity additionally noticed a slight uptick and confirmed with DOT’s worth motion. A transfer above the higher trendline would enhance the possibilities of a sustained rise within the coming days. Lastly, the MACD approached a bullish crossover, whereas its histogram famous receding bearish momentum.
DOT’s bullish resurgence at $11.7 help fueled optimism available in the market and lent help to an prolonged rise over the approaching days. An increase above twenty second June’s swing low of $13 would supply affirmation of a good consequence and as soon as it happens, merchants can choose to lengthy DOT as a way to capitalize on the projected hike.