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After Bitcoin’s recovery over the weekend, the altcoin market has also been showing strong progress. In the long-term, most altcoins were, however, seeing a sideways movement. Polkadot was among the alts that saw a long period of growth, but it ended up in a tight price range.
At the time of writing, Polkadot, with a market capitalization of $29.821 billion was being traded at $32.02.
Polkadot [DOT] Daily Chart
Source: DOTUSD on TradingView
After a sharp rise within the ascending channel, the price of DOT was consolidating between $32 and $40. However, recently, it broke the support at $32 and was treading close to the next support at $27.
The coin may continue its gradual movement at this level and may not witness a drastic price swing in the long-term.
Reasoning
The market has lost momentum in order for a drastic price swing to take place. Although it was opening up to more volatility, the signal line of the Bollinger Bands had moved above the candlesticks, indicating a bearish trend in the market.
This was also complemented by the 50 moving average that was currently acting as a small axis for the price to oscillate.
Whereas, the Relative Strength Index noted that DOT was experiencing tremendous selling pressure as the value touched $27. However, the buyers pushed the price higher, but the digital asset was once again witnessing a similar sell-off.
Whereas, the MACD indicator was suggesting a sharp decline in the asset’s movement over the month of March. The market has been bearish throughout the month and may continue on this journey.
Conclusion
The current Polkadot market, although open to volatility, may have to wait for a while before a price swing. The market has lost bullish momentum and even though the bearishness was not increasing, it was the prominent trend observed throughout the month. DOT may continue to hang around bears unless a sudden shift in momentum is witnessed.
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