To shed light on the protocol’s successes, Polkadot insiders have been providing key data. As it stands, these accomplishments are very helpful to the overall ‘well-being’ of DOT. However, the coin’s value has been down alongside the rest of the crypto and financial market.
Is this downturn going to be a great chance to buy for investors?
Markets are under intense selling pressure. The worry that the year-on-year inflation news on September 13 caused is still with us today.
The overall market cap for DOT fell by 15.3 percent, from $8.75 billion to $7.44 billion. Polkadot has shed 10% weekly loss on the heels of the U.S. central bank’s not so rosy inflation assessment. As of this writing, DOT is trading at $6.33, down 8.6 percent in the last seven days, data from Coingecko show.
These figures are not the only ones affecting market prices. Inevitably, the current interest rate hike of 0.75 percent by the Federal Reserve is seen to have a negative effect on the pricing. If things get much worse, this will have a negative impact on the value of DOT.
How Soon Will The Price Rally Occur?
Is there any way for DOT to recover quickly despite the general gloom in the financial markets?
If one looks at the daily tick indicators, one can see that DOT has been met with resistance around the $8.06 mark.
The price drop on September 13th is consistent with this. Once again, the price was rejected after reaching the $7.07 price resistance, sending it tumbling to the $6.12 support level.
Here’s Where Polkadot Rally May Be Seen
Indicators have suggested that the $6.12 support is generating positive momentum. Any significant momentum generated during this period can help the bulls break past the $7.07 resistance level.
The increasing optimistic forecast may suggest that Polkadot’s recent accomplishments are influencing investor confidence.
The positive reversal on indicators aligns with recent tweets from @PolkadotInsider. The amount of investment projects on the protocol is one of Polkadot’s ecosystem’s most remarkable achievements.
Apparently, this #CryptoWinter doesn’t slow us down; we keep investing and supporting the most promising projects in this space. 💪
— DFG (@DFG_OfficiaI) September 22, 2022
DFG Global led the list with 52 projects, followed by AU21 Capital with 39 and Hypersphere with 35.
This tweet was recently published on September 22. Following this, the price rose to a $6.44 high close. As of this writing, it appears that DOT is preparing a relief rally.
Upon detailed examination of the data, the token’s last settlement occurred at $6.48, its previous peak. This growing trend is reflected in the sentiment of investors.
Together, the momentum indicator, the commodities channel index, and the Stoch RSI are currently rising. This inclining behavior suggests that investor sentiment is rather upbeat, even in volatile circumstances such as the present.
DOT’s prior market activity likewise matched the XABCD harmonic pattern, which can advise investors and traders to buy the dip.
DOT total market cap at $6.9 billion on the daily chart | Source: TradingView.com Featured image from The Daily Hodl, Chart: TradingView.com