Decoding why Polkadot [DOT] is struggling to regain support levels

After a “wow” efficiency final week, Polkadot [DOT] has reversed to digging for brand spanking new crimson ranges. Recall that DOT was the very best performing cryptocurrency among the many prime cash on CoinMarketCap throughout the aforementioned interval. 

Nevertheless, DOT has solely produced losses for buyers with the coin within the portfolio during the last 24 hours. As of 9 August, DOT was buying and selling at $9.02, solely to have fallen to $8.59 on the identical day. At press time, DOT had surged to $8.70, which nonetheless represented a 2.92% decline from the day earlier than.

New upgrades however…

Coincidentally, there have been new upgrades to the Polkadot ecosystem. On 10 August, Polkdaot permitted a relay chain improve. After being proposed earlier, the improve was geared toward bettering runtime migrations and database operations on its chain. 

Additionally, Polkadot Insider, an analytics platform centered on the Polkadot ecosystem, reported that some prime crypto tasks on Binance have been added to the chain. They embody Chainlink [LINK], Kusama [KSM], and Phala Network [PHA], amongst others.

These upgrades helped improve the event exercise of DOT, in line with Santiment. Though it rose to 71.23 on 5 August, the event exercise had decreased to 63 at press time, which meant it was at an improved stage in contrast with its stance on 25 July.

Supply: Santiment

Is DOT dropping it?

One other concern for DOT buyers is the coin’s lack of ability to carry its assist recently. The four-hour DOT worth chart confirmed that the coin has been following a downward development.

After holding the $9.05 assist on 8 August, DOT has failed to take care of some other one with the $8.64 misplaced and $8.53 zone on the brink.

Different indicators confirmed that DOT struggled to withstand promoting stress, and a bearish momentum might stay for some time.

The Bollinger Bands (BB) additionally indicated that there was rising volatility with alerts for DOT to get much more unstable. 

Supply: TradingView

With its present state, the stress on DOT might possible be why the event exercise had not influenced a worth uptick. So, is it simply that?

Apparently, it won’t be throughout for short-term DOT buyers. It’s because just a few different indicators confirmed an opportunity of a worth rise.

The Relative Energy Index (RSI) maintained a impartial stance, with its place nearer to sustaining shopping for momentum.

Equally, the 20-day Exponential Transferring Common (EMA) in blue was above the 50 EMA, indicating that greens can seem. 

Supply: TradingView

Lastly, buyers want to notice that the RSI and EMA outcomes don’t totally neutralize the projections of the BB.

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