Polkadot Price Analysis: DOT Faces Bearish Pressure, But Bulls Aim to Regain Momentum

Polkadot (DOT) has been capturing attention with its recent price movements and technical indicators. As a key player in the digital currency space, DOT currently trades at $8.98, marking a 3.74% increase over the past 24 hours. Despite this recent uplift, the coin has experienced a significant 13.43% decrease over the last month. Its market cap rankings sit at $12.9 million.

DOT Data Chart: CoinMarketCap

The Polkadot network boasts a circulating supply of 1,431,139,126 DOT, which is equal to its total supply, suggesting that all tokens that have been created so far are already in circulation, however its maximum supply is infinite.

DOT Technical Analysis & Recent Market Dynamics

Polkadot's performance over the past 30 days has been characterized by a negative trend, with the coin losing 13% of its value during this period. Three out of the four previous weekly candles have closed bearishly, indicating a prolonged period of selling pressure. Despite this bearish sentiment, DOT managed to hit a recent high of $11.80 before the 13% loss. The coin is currently trading around an ascending trendline support, which has provided a temporary respite for bulls. The weekly Relative Strength Index (RSI), a technical indicator used to measure the momentum of an asset, stands at 59, suggesting that the market is neither overbought nor oversold, leaving room for potential upward or downward movement.

Polkadot's recent price action has been marked by a bullish resurgence, as the coin has gained support from the ascending trendline and is currently trading in a positive direction. Over the past three consecutive days, the price has exhibited a bullish trend, indicating a potential shift in market sentiment. The bulls' next target is the recent high of $11.80, which could serve as a resistance level. However, if the ascending trendline support is breached, the next significant support level lies in the $6.20 zone, which could trigger further selling pressure.

DOTUSD Price Chart: TradingView

The daily RSI for Polkadot currently stands at 47.72, suggesting that there is more room for buying pressure to accumulate. Traders and analysts will be closely monitoring the coin's performance in the coming days, as a sustained break above the $11.80 resistance could signal the start of a new bullish trend.

DOTUSD Weekly Price Chart: TradngView

Also, one noteworthy observation is the widening of the Bollinger Bands, which are volatility indicators derived from a moving average. When the Bollinger Bands become wider, it often signals a period of increased volatility in the market. This widening could indicate that the price is preparing for a potential swing in the near future depending on the prevailing market sentiment and underlying fundamentals of the DOT due to this increased volatility.