Polkadot ranks #10 in terms of market capitalization that is cumulatively worth a little below $10 billion, courtesy of the 4% profit booking witnessed on August 9, 2022. Despite holding stronger bearings, technicals have failed to incite buyers into taking action. The prolonged consolidation and failure to mark higher gains have incited buyers to book their profit near swing highs.
Many holders expect a similar trend this year as market scenarios have improved significantly over the months. But the improving economic scenario on the global scale is having a rather negative impact on cryptocurrency growth because of higher adoption of transitional methods and clouds of regulatory actions. The utility offered by the Polkadot blockchain can accelerate its ecosystem growth once an environment with higher adoption of blockchain is created.
Polkadot blockchain emerges with positive action. The latest resistance levels are a single-digit movement away, with sellers taking advantage of each positive price action. Technicals are quite positive but haven’t converted well on the price. Check our DOT coin price prediction to know if it will be profitable to invest in this crypto or not!
On daily charts, DOT tokens can be seen taking an uptrend from the July lows and is yet to maintain a one-month positive outcome. Polkadot has gained decent value in the last one month despite the negative profit booking active today. RSI indicator showcases a rejection at peak value, which was also an overbought zone.
The fact that RSI reached its peak fairly indicates that either seller is not participating or there is higher buying activity. In any case, there swings a sword of profit booking, which can incite holders to book profits if a higher positive action and an impression of upside movement aren’t created for the buyers.
MACD indicates much higher positive action, with this indicator being in the positive axis throughout a major portion of the overall negative action seen in 2022. November 2021 witnessed a peak value of $55, with the lowest seen in July 2022.
Current price action isn’t even a shadow of the volatility witnessed during the peak buying cycle of August 2021 to November 2021. $10.88 is the immediate resistance that needs to be breached to ignite a buying sentiment in the short term.
On weekly charts, the Polkadot price action is even more resistive. Despite a positive price action compared to the weeks of negative trend, it is not enough to arouse buyers as the positive movement in the last two months is short of the negative movement in just one week.
$24 has become a long-term target for the buyers, but the formation of wicks near $9.5 levels indicates sellers are waiting for an opportunity to push the value down below. RSI on weekly charts is quite weak, but MACD has just marked the beginning of a positive swing for DOT.