Polkadot incentivizes the members of the community to assist fight scams.
Negative attitude could hamper the effective price recovery.
The MFI numbers are depleting.

The Polkadot invites and rewards the community members to come forward to fight the scams through an “anti-scam bounty.” This quarter proved very turbulent for the crypto market, due to which this initiative should have had a bullish impact; instead, it reflected with no response as the price continued to form the downtrend triggered by the FTX collapse.

Here’s what the charts reveal

The price finds a calm zone at about $5 and continues to form a downtrend. The volume also depletes as the users are overwhelmed with pessimistic sentiments and don’t react the same as they used to before the crunch. The EMAs are slopped downwards and indicate a consistent fall.

The CMF indicator floats under the 0-mark level, indicating the ongoing downtrend. It may rise slightly before the sharp fall, as one last little try to prevent the drop. The MACD indicator is moving forward to converge and records descending histograms, with the signal line above the MACD line. It may turn slightly bullish as some buyers participate in the market but will remain bearish in the bigger picture. The RSI indicator remains neutral as no force affects the market, and may maintain this position.

The 4 hour POV

The CMF line rises as the last flicker before sliding down by many folds. This may transition soon to the strong bear swung market. The MACD indicator shows green as the buyers try to lift the ongoing market, but it isn’t strong enough to turn the market fully bullish. The RSI indicator floats near the 40-50 range and reflects neutral signs until any of the forces react.

Conclusion

The market for DOT is still very fragile and favors sellers as the bears currently control it. The price is expected to drop to the level of $3.80 very soon and may even set its market back by many years. We can say that the current price movement is not a solid surge, and the worst is yet to come.

Technical levels

Support levels: $4.50 and $3.80

Resistance levels: $8.30 and $9.70

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/2022/11/26/dot-may-undergo-a-free-fall-as-negative-sentiments-flourish-bears-awaiting-the-drop/