Polkadot Price Hits Multi-Year Support in Oversold State; Rebound Imminent?

As a seasoned crypto investor with battle-tested nerves and a portfolio that has weathered more market storms than a lighthouse, I find myself observing the current Polkadot (DOT) situation with a cautious optimism. The past two weeks have been turbulent, to say the least, but the crypto market has always had its share of ups and downs – much like a rollercoaster ride without the cotton candy.


Over the past 24 hours, Polkadot‘s price has decreased by about 2%. Yesterday, during U.S. trading hours, there was a surge in selling activity across the crypto market, which led to a decline in major cryptocurrencies such as Bitcoin and Ethereum. Bitcoin fell by around 2-4%, reaching approximately $54,700, while Ethereum dropped to roughly $2,351, representing a similar percentage decrease. The current high supply of these cryptos suggests that the ongoing correction may not have reached its lowest point yet, and there’s potential for further selling pressure to cause a more pronounced downturn.

Polkadot Price Signal Reversal From Major Support

Over the last fortnight, the cryptocurrency market experienced a significant decline due to growing economic downturn concerns and a substantial dumping in conventional marketplaces. This bearish trend pushed many prominent digital currencies such as Polkadot (DOT) towards steep drops.

Over the course of a day, the price of Polkadot dropped from $6.47 to $3.6, representing a decrease of 44.55%. This downward movement has been held up by the support level, which has been active since October 2020. The previous correction trend ended before the significant surge of 233%.

The graph showing price changes over time (the “long-tail rejection candle”) indicates that the support level at $3.6 is holding strong due to persistent demand for the altcoin. As a result, the altcoin increased by 26% and reached $4.5. This significant rise also caused Polkadot’s market capitalization to soar to approximately $6.68 billion.

Moreover, with the Relative Strength Index (RSI) sitting at 29%, it suggests that the DOT coin is currently undervalued and in oversold territory. This potential bargain might lure in more traders, potentially sparking a 16% surge to approximately $5.3, aiming to breach the downward trendline.

Polkadot Price Hits Multi-Year Support in Oversold State; Rebound Imminent?

As a crypto investor, I’ve noticed an impressive uptick in network activity for Polkadot based on the data I’ve been tracking. Specifically, the number of unique addresses on the Polkadot Relay Chain has climbed from 956 to 1,100 over the past week, representing a growth of around 15%. This surge in activity suggests that the network is gaining momentum and attracting more users.

Furthermore, over the course of seven days, there was a significant increase in the number of active addresses on the Polkadot Relay Chain, rising from approximately 5,630 to 7,030. This represents an increase of around 25% compared to the previous period.

These rises suggest an improvement in user interaction, a surge in network action, and possibly wider acceptance and use within the Polkadot system.

Contrarily, it seems that selling pressure is widespread across markets, which might encourage sellers to attempt breaking the $3.6 floor once more. A potential break below this level would suggest a continuation of the downward trend and could cause Polkadot’s price to drop by approximately 18%, reaching the $3 psychological support level.

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2024-08-07 23:52