- Prices consolidated for more than 3 months.
- Prices fall briskly by 1.44%.
- Trading volume reduces by 40% amounting to $83.8 million.
Polkadot’s native coin, DOT, was observed to be moving in downward momentum and under consolidation for over 3 months. The market was punched hard by unfortunate events that occurred and created havoc for all crypto maniacs. Recovery from such shocks isn’t easy, especially when no positive backing supports recovery and the bombarding of nonstop negative aftermaths.
The picturesque
The DOT prices form a falling wedge pattern with all significant EMAs lying above the prices. The trading volume is observed to be moving sideways, showing consistency. If current prices can successfully beach $4.7 mark, if may successfully establish an uptrend targeting at $6.
The current price action suggests that prices are under consolidation. The CMF indicator moves collinear to the baseline showing neutral state and after such heavy hits, it may be a positive sign. The MACD shows declining selling interest with lines converging and bars depleting. The RSI lays close to the lower border showing overwhelmed selling.
Closer look
The closer time frame shows prices consolidating unceasingly. CMF rises above the zero mark and goes flat. The MACD shows initiation of buyers taking interest. The RSI rises to the higher zone but still is influenced by sellers.
Conclusion
The market is hopeful but is not sure of its prediction as it isn’t supported by any positive amendment and leaves users scared, as they fear false hopes. The prices paint an optimistic picture but its validity will only be ensured after the predicted move.
Technical levels
Support levels: $4.2 and $3.9
Resistance levels: $6.5 and $7.1
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2022/12/24/dots-snowfall-may-add-to-celebration-prices-show-festive-glow/