Polkadot (DOT) remains on a downward trajectory, struggling to breach the $7 mark amidst persistent selling pressure.
Following a significant recovery over the weekend, reaching $7.47 on Monday, DOT has faced a notable downturn.
Trapped within the $6.40 to $7 range, Polkadot shows limited signs of gaining traction as its value continues to dwindle. With a drop of over 30% in the past month, dipping below the crucial $7 threshold, DOT’s decline contradicts hopes sparked by a substantial weekend surge aiming for the $8 level. Saturday’s 8.38% spike propelled DOT past the 200-day SMA, previously a resistance, to $7.24. Despite Sunday’s dip to $6.97, DOT rebounded, closing above $7 at $7.14.
Monday’s trading maintained upward momentum, supported by the 200-day SMA, yet facing resistance at the 20-day SMA, settling at $7.47. Despite support from the 200-day SMA, DOT entered negative territory on Tuesday, dropping nearly 3% to $7.25. Despite holding above $7 with 200-day SMA support, Wednesday’s attempt to breach resistance failed, with sellers driving prices below the 200-day SMA to $6.92, breaking support.
Facing resistance at the $7 mark and a bearish cross between the 20-day SMA and 200-day SMA, DOT is down over 3% in the current session, trading at $6.52, with support expected around $6.40. The RSI at around 40 suggests potential bullish momentum if buyers seize control. Meanwhile, a bullish MACD indicates potential stabilization around the support level, inviting buyer participation.
Potential catalysts for reversing DOT’s bearish trend include the introduction of the Join-Accumulate Machine (JAM) protocol by Polkadot founder Gavin Wood, aiming to merge features of Polkadot and Ethereum. Discussions for an $8.8 million sponsorship deal with Inter Miami could also attract attention. Recent developments in leading parachains, like Acala Network’s Sinai upgrade, further bolster optimism, along with Polkadot’s multichain architecture’s potential to enhance AI scalability.
