Whereas Polkadot [DOT] ended July strongly, the beginning of August was on the alternative aspect. On the final day of the earlier month, DOT elevated from $8.2 and went as excessive as $9.11—driving good earnings for its short-term buyers.
Nevertheless, DOT has reversed to a downward trajectory since 1 August and has misplaced round 9.64% of its earlier day’s worth. At press time, DOT’s value was $7.83 as per CoinMarketCap.
Great distance forward?
From the charts, DOT had been holding on to its $8 help after shedding it at $8.63 and $8.15. The coin, nonetheless, misplaced its grip on the zone after the promoting strain overwhelmed it.
The lack of this help might finish the hopes of DOT merchants who aimed to go lengthy.
Effectively, that will additionally not be the case, as DOT didn’t totally fall off after shedding a important help zone in July.
Supply: TradingView
The bearish state of DOT was additional confirmed because the Relative Energy Index (RSI) and Transferring Common Convergence Divergence (MACD) revealed their respective positions.
In line with the chart, the RSI was already heading in the direction of the oversold degree. Nevertheless, it had maintained a very good degree in favor of DOT sellers.
At press time, it had gone decrease than the midpoint at 41.95. Equally, the MACD established the bearish DOT sentiment because the sellers’ power indicator (orange) rose above the patrons’ (blue).
Whereas some merchants might need hoped for bullish indicators, DOT had different plans. This was as a result of the promoting strain saved rising as DOT indicated extra flatter lows and decrease highs. Within the chart, the descending triangle could show that DOT’s present bearish momentum is extremely excessive.
Expectations declined
Primarily based on Santiment information, the standing of DOT could proceed to be in favor of shorts. Buying and selling quantity had lowered 35.94% over the past 24 hours. As of 1 August, it was $1.01 billion. On the time of this writing, it had gone right down to $666.85 million.
Supply: Santiment
Equally, a dwindling market cap doesn’t characterize merchants’ hopes to go lengthy. Notably, the market cap decreased from $8.91 billion to $81.2 billion.
Nevertheless, it is perhaps too early for shorts to rejoice over management. It is because the Exponential Transferring Common (EMA) didn’t comply with the projections of the MACD and RSI. The 20 EMA (blue) was solidly above the 50 EMA (yellow), indicating that the continual value fall could not final lengthy.
The following 24 hours might be crucial for DOT. It might be the flawed time to go lengthy if DOT loses additional. Nevertheless, the EMA indicators counsel {that a} reversal in the direction of a bullish momentum can be doable.
