Polkadot’s price analysis suggests a bearish outlook as the cryptocurrency experienced a slight decline and remains in a consolidation phase under the influence of bearish sentiment. Demand and accumulation levels have decreased while the Relative Strength Index (RSI) remained below the 40-mark, indicating selling pressure outweighing buying pressure in the market. The declining market capitalization of Polkadot shows that sellers are still exerting control over the asset, and there is a risk of the altcoin breaking below its crucial support level if selling pressure intensifies. The upcoming trading sessions will determine whether the price breaks out above or below the support line.
This article originally appeared on www.newsbtc.com
Polkadot (DOT) has been experiencing a decline over the past few days, falling from a high of $34.87 on May 15 to a low of $5.01 on July 20. While the cryptocurrency has since recovered slightly, it remains in a bearish trend.
The main driver behind the decline of Polkadot appears to be the broader market sentiment. Much of the crypto market has experienced a downturn in recent weeks, with Bitcoin falling below $30,000 for the first time since January. Other digital assets, including Ethereum, Ripple, and Binance Coin, have also suffered significant losses.
But while market conditions may be playing a role in Polkadot’s decline, there are also specific factors that are causing concern for traders and investors. One issue is the ongoing concerns over the network’s parachain auctions, which have been delayed multiple times and are yet to begin.
Another factor is the competition from other cryptocurrencies, particularly Ethereum. With the launch of Ethereum 2.0, the platform is expected to become more scalable and offer many of the same features and benefits as Polkadot. This has led some investors to question Polkadot’s long-term viability in the market.
So, can bulls defend the $5.15 support level for Polkadot? There are certainly reasons to be cautiously optimistic. While the cryptocurrency has been on a downward trend, it has experienced some sideways movement over the past few days. This could indicate that the market is beginning to stabilize, at least in the short term.
However, there are also some risks to be aware of. If Bitcoin and other major cryptocurrencies continue to decline, it could create further downward pressure on Polkadot. Additionally, if the network’s parachain auctions continue to be delayed, it could undermine confidence in the platform and lead to further selling pressure.
Ultimately, the future of Polkadot will depend on a number of factors, including its ability to deliver on its promises and compete with other cryptocurrencies in the market. For now, traders and investors will be watching closely to see how the cryptocurrency performs in the coming days and weeks.