- After reaching $7.34 resistance in the previous 24 hours, bullish strength dissipates.
- Bear momentum will reverse soon, according to indicators.
- Breaking resistance is necessary for bullish domination.
After encountering significant resistance at the day’s high of $7.34, the Polkadot (DOT) market saw a 24-hour bear market. After the reversal, the DOT price dropped to a session low of $7.03, where support was established.
This drop might have been caused by investors taking gains, as some traders profited from the positive market trend that saw DOT record an intra-day high of $7.34. However, the bears had pushed the DOT price down to $7.07, a drop of 3.28% as of press time.
During the recession, market capitalization and 24-hour trading volume declined by 3.80% and 17.73%, respectively, to $8,198,653,425 and $323,024,657. This slump implies a significant drop in investor confidence and market activity, indicating that the previous strong market was a fluke or an overreaction. Investors quickly recognized their overexposure to DOT and sold off their holdings to limit their prospective losses.
The Aroon up reading of 50.00% trends above the Aroon down reading of 28.57% on the 4-hour price chart, indicating that the adverse market in DOT is losing pace and that an uptrend is likely to follow. As a result, with the Aroon up reading moving above the Aroon down reading and increasing momentum, bullish investors may be able to profit from DOT’s expected forthcoming rally.
On the other hand, the Chaikin Money Flow (CMF) indicator displays -0.06, suggesting more negative capital than bullish money is pouring into the DOT market. This reading implies that bearish capital continues to outnumber bullish means despite the Aroon up reading going higher than the Aroon down reading.
This shift might indicate that the anticipated upswing will take longer than expected and that pessimistic investors may have a window of opportunity to profit before the market turns positive.
In the 24-hour price chart, the Aroon up continues to outperform the Aroon down, with a reading of 64.29% to the latter’s 21.43%. This shift implies that the Aroon up line is still moving considerably faster than the signal line, indicating that buyers dominate the market and prices may continue rising, although the near term is bearish.
The CMF also trends over the “0” line, with a value of 0.07, indicating that, despite the present adverse market, there is still considerable net money flow into the DOT market. This level suggests long-term positive sentiment will follow even if the DOT market experiences short-term negative pressure.
While being negative in the immediate term, the DOT market may eventually rebound as indicators point to developing bullish strength.
Disclaimer: In good faith, we disclose our thoughts and opinions in our price analysis, as well as all the facts we give. Each reader is responsible for his or her own investigation. Reader discretion is advised before taking any action.