Whereas Polkadot [DOT] ended July strongly, the beginning of August was on the alternative 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 traders.
Nevertheless, 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 value was $7.83 as per CoinMarketCap.
Good distance forward?
From the charts, DOT had been holding on to its $8 assist after shedding 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 might finish the hopes of DOT merchants who aimed to go lengthy.
Effectively, that will additionally not be the case, as DOT didn’t solely fall off after shedding a important assist zone in July.
Supply: TradingView
The bearish state of DOT was additional confirmed because the Relative Energy Index (RSI) and Shifting Common Convergence Divergence (MACD) revealed their respective positions.
Based on the chart, the RSI was already heading in direction of the oversold stage. Nevertheless, it had maintained an excellent 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 consumers’ (blue).
Whereas some merchants may need hoped for bullish alerts, DOT had different plans. This was as a result of the promoting strain stored growing as DOT indicated extra flatter lows and decrease highs. Within the chart, the descending triangle could show that DOT’s present bearish momentum is extremely excessive.
Expectations declined
Based mostly on Santiment information, the standing of DOT could 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.
Nevertheless, it may be too early for shorts to rejoice over management. It’s because the Exponential Shifting Common (EMA) didn’t comply with the projections of the MACD and RSI. The 20 EMA (blue) was solidly above the 50 EMA (yellow), indicating that the continual value fall could not final lengthy.
The following 24 hours might be essential for DOT. It could be the fallacious time to go lengthy if DOT loses additional. Nevertheless, the EMA indicators counsel {that a} reversal in direction of a bullish momentum can be doable.
