Will DOT Price Extend Decline?

Polkadot (DOT) price has been on a downtrend after being unsuccessful several times in closing above the $5.60 level. The bullish rally for Polkadot started in the middle of June after the release of news regarding BlackRock, an investment banking firm, filed for Bitcoin Spot ETF.

The whole cryptocurrency market turned bullish after the news due to positive sentiment. DOT formed a support at $4.35 and commenced a bullish rally. However, the bullish momentum slowly faded after the DOT price attempted several times to close above $5.60. The attempts were unsuccessful due to the strong presence of bears above $5.60.

Polkadot price melted and shattered the support level of $4.35. Recently, the cryptocurrency price formed a support at $3.98. The asset price retests $4.20 and is currently hovering near the support of $3.98.

If the bulls can push the price back into the previous zone, above $4.35, it might rise and retest the $4.80 level, but it would be the price crossing two significant hurdles of $4.20 and $4.35. On the other hand, if the Dot’s price melts below the recent support of $3.98, it might fall toward the next support level of $3.72.

The market capitalization of Polkadot has increased by 0.39% to $4,971,977,081 at the time of writing. Dot price is down 92.64% from the all-time high of $55 and up 50.41% from the all-time low of $2.69.

Polkadot Integrates With Circle’s USD Coin

Polkadot, a network that facilitates interoperability among multiple blockchains, announced the integration of USD Coin (USDC) into its Asset Hub. The integration strengthens liquidity and provides easier institutional access to Polkadot’s ecosystem.

USD coin, managed by Circle, is already a part of blockchain ecosystems such as Ethereum and Solana, and now Polkadot marks yet another expansion for the coin.

Will DOT Price Retrace Back Into The Previous Zone?

The cryptocurrency price has plunged below 20, 50, 100, and 200-day exponential moving averages, suggesting bearish momentum. The 20-day EMA has been acting as a resistance to the price.

The Chaikin money flow score has dropped below the 0 mark and trades at -0.04, indicating slight weakness in the market. The relative strength index is observing a slow surge toward the 50 neutral mark, implying a rise in bullish participation.

The long-short ratio is 1.0064 with 50.16% longs and 49.84% shorts, indicating a slightly higher number position on the buying side in the last 24 hours.

Conclusion

If Dot’s price is unsuccessful in rising above $4.20 and $4.35, it might start another decline. Traders should wait for the break of recent support of $3.98 for selling opportunities.

Technical Levels

Support Levels: $3.98 and $3.72

Resistance Levels: $4.20 and $4.35

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing