Whereas Polkadot [DOT] ended July strongly, the beginning of August was on the other facet. On the final day of the earlier month, DOT elevated from $8.2 and went as excessive as $9.11—driving good earnings for its short-term buyers.
Nonetheless, DOT has reversed to a downward trajectory since 1 August and has misplaced round 9.64% of its earlier day’s worth. At press time, DOT’s worth was $7.83 as per CoinMarketCap.
Good distance forward?
From the charts, DOT had been holding on to its $8 assist after dropping it at $8.63 and $8.15. The coin, nevertheless, misplaced its grip on the zone after the promoting strain overwhelmed it.
The lack of this assist may finish the hopes of DOT merchants who aimed to go lengthy.
Nicely, that will additionally not be the case, as DOT didn’t solely fall off after dropping a very important assist zone in July.
Supply: TradingView
The bearish state of DOT was additional confirmed because the Relative Energy Index (RSI) and Transferring Common Convergence Divergence (MACD) revealed their respective positions.
In line with the chart, the RSI was already heading in the direction of the oversold stage. Nonetheless, it had maintained stage in favor of DOT sellers.
At press time, it had gone decrease than the midpoint at 41.95. Equally, the MACD established the bearish DOT sentiment because the sellers’ power indicator (orange) rose above the patrons’ (blue).
Whereas some merchants might need hoped for bullish indicators, DOT had different plans. This was as a result of the promoting strain saved rising as DOT indicated extra flatter lows and decrease highs. Within the chart, the descending triangle might show that DOT’s present bearish momentum is extremely excessive.
Expectations declined
Based mostly on Santiment knowledge, the standing of DOT might proceed to be in favor of shorts. Buying and selling quantity had diminished 35.94% over the past 24 hours. As of 1 August, it was $1.01 billion. On the time of this writing, it had gone right down to $666.85 million.
Supply: Santiment
Equally, a dwindling market cap doesn’t signify merchants’ hopes to go lengthy. Notably, the market cap decreased from $8.91 billion to $81.2 billion.
Nonetheless, it may be too early for shorts to rejoice over management. It is because the Exponential Transferring Common (EMA) didn’t observe the projections of the MACD and RSI. The 20 EMA (blue) was solidly above the 50 EMA (yellow), indicating that the continual worth fall might not final lengthy.
The following 24 hours could possibly be vital for DOT. It could be the unsuitable time to go lengthy if DOT loses additional. Nonetheless, the EMA indicators counsel {that a} reversal in the direction of a bullish momentum can be attainable.
