Polkadot has been stumbling from extreme selling pressure with price trend testing the support strength for the last three months. Sudden dips each month are testing the potential for DOT tokens to overcome the negative scenario.
The 50 DMA curves remain out of bounds because of the limited upside momentum. The current market capitalization of $6,823,394,702 is close to the total circulating supply of the token.
Decentralized web, permissionless tech, and other futuristic features offered by DOT token may all depend on the success of Polkadot Relay Chain. The upcoming issues with its efficiency and deployment can create an ambient scenario for the DOT token to jump to new heights. Polkadot is back at the pre-October 2021 breakout as it failed to scale to investors’ expectations.
Polkadot now enters an officially negative market scenario after consolidating near similar support levels for the last three months. Dipping technical indicators only affirms the overall negative stance, and it could take a while before we witness DOT in its former glory. Should you buy DOT at the current dip? Click here to know the answer!
After failing to sustain its 50 DMA curve in April, the DOT token has been falling to new lows each month. Overall the volumes have taken a huge hit, and so has the RSI indicator, which now showcases a near oversold zone for the trading valuation of DOT tokens.
Polkadot is already going through a bearish crossover as the price has dipped below the $7 mark. On the flip side, the DOT token now battles another factor of resistance level that is lowering with the failure of each swing to induce positive momentum.
DOT’s further projection in the short term is also negative as there are frequent upside wicks, creating negative candles. Moreover, DOT is even turning positive candlesticks into double wick candlesticks. These price actions only affirm the broader sense of negative profit booking creeping up into investors’ thoughts.
The success of its developmental projects such as Parachains and Relay Chains remains the only affirmative method of assessing further scaling for the Polkadot blockchain.
Source: https://www.cryptonewsz.com/polkadot-continues-negative-trend-is-dot-on-the-destruction-path/