Over the past week, Polkadot (DOT) struggled to gain traction, falling 8.41% from April 30 to May 4. acquire more DOT.
According to CoinMarketCap, Polkadot is ranked 11 of all cryptocurrencies with a current market price of $5.75. Polkadot’s 24-hour trading volume is up 29.40% in 24 hours, while its market cap is also up 1.57% in the same time frame.
Polka dots (DOT) Fear & Greed Index today is 46. This level indicates that bulls are gradually pushing the price upwards, but the bears are still in their positions.
Over the past few days, Polkadot (DOT) has shown some bullish signs; so expect a possible recovery in the coming weeks as investors take advantage of the current momentum.
DOT price analysis
Polkadot trades between the 200-day simple moving average and the 50-day simple moving average (SMA). This indicates that the market is in a neutral or consolidation phase.
The price does not move significantly in either direction. During this phase, traders and investors can use the 50 days and 200 days SMAs as support and resistance levels when trading.
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However, if the price crosses the 50-day SMA, it could indicate a short-term uptrend, giving investors a buying opportunity.
The relative strength index (repetitive strain injury) level of DOT is 41, indicating that the market is moving towards the neutral zone and there is indecision among investors.
But the 24-hour volume indicator shows that trading activity is gradually growing, which could mean that investors are building interest in the coin. This can increase liquidity and potential price movements in favor of DOT.
The chart above shows the major support and resistance levels of Polkadot (DOT). Polkadot is now trading between $5,587 and $6.07 primary support and resistance levels. DOT’s first major resistance level is at $6.07. If the price rises above this level, the next resistance levels will be $7,970.
Future developments for Polkadot
Many upcoming developments on the Polkadot network could drive adoption, usage, and price in the near future.
For example the municipality voted aboard a Bridge Hub system parachain to Polkadot. Also Mythical Games plans Migrate its mythical chain to the Polkadot blockchain.
Furthermore, the developers are in talks about setting up Polkadot Hubs in Southeast Asia, with Bali and Indonesia as the first focus.
These development proposals and discussions demonstrate the team’s efforts to improve network efficiency, connectivity and interoperability. Over time, more adoption and activity can positively impact DOT prices.
Featured image from Pixabay and chart from Tradingview.com
