Disclaimer: The findings of the following article attempt to analyze the emerging patterns in the Polkadot short-term market and its impact on the price.
Polkadot has been gaining much attention from the crypto community, ever since its launch. Even though Bitcoin has been reaching new highs, the coin has been consolidating in the market over the past couple of days.
As it did not react to Bitcoin’s market volatility, DOT has been at an indecisive point for its short-term move.
Polkadot 1-hour chart
Source: DOT/USD on TradingView
DOT’s hourly chart indicated that it was being valued close to $4.40 and was forming a part of a descending channel. The downward sloping price of the digital asset was being supported at the price level of $4.32, whereas, another support level was visible at $4.09.
Although the downtrend was visible, the DOT market has not been poised for a price swing in the near future.
Reasoning
This indecisiveness of the digital asset could be noted using various indicators that have been highlighting the low momentum in the market. The Awesome Oscillator was noting a positive value, but the short bars were indicative of the low short-term momentum in the market.
Whereas the Relative Strength Index was highlighting that the coin was still at an equilibrium state, wherein the buying and the selling pressures are equal. The price has been negative but the pressure has not been enough to outline a dominant trend in the market.
Conclusion
As Bitcoin’s price unwinds, the altcoin market of DOT may witness the sideways movement. With low volatility, the short-term trend of the coin remains unclear.
