Cryptocurrency

Polkadot [DOT] – What to expect now that the $7 level is re-tested once again

Polkadot [DOT] simply concluded one in all the crypto-market’s most risky weeks with a retest of assist close to the $7-price level. This sturdy assist has thus far prevented DOT from searching for as a lot draw back as most high cryptocurrencies.

DOT is amongst the high cryptocurrencies with the lowest weekly loss. It was buying and selling at $7.18, at press time, after 5.71% beneficial properties in the final 24 hours, reducing its weekly loss to 6.71%. However, this is a minor drop in contrast to different high cryptos, a few of which misplaced greater than 20% in the final 7 days.

DOT’s worth has been consolidating close to the $7-price level for the previous couple of days. This is inside the identical ball-park as its earlier backside throughout the May crash. This means that the identical assist line has been holding properly with little stress to push the worth decrease.

Source: TradingView

One potential motive why the assist level appears so sturdy is as a result of there was a notable uptick in accumulation close to the identical level.

DOT’s RSI highlighted the lack of promoting stress inside the assist vary. The identical level additionally acted as an accumulation zone when the worth fell into the oversold zone on Monday.

Limited by low shopping for stress and but…

DOT has solely managed little upside thus far due to prevailing market circumstances. Although it appears to not have skilled vital promoting stress, it additionally failed to garner sufficient shopping for stress to assist sturdy upside.

Despite this, whales have been accumulating close to the $7-support level, as indicated by the provide held by whales metric. It elevated from 44.45% on 16 June to 44.91% by press time.

1655696867 753 Polkadot DOT – What to expect now that the 7

Source: Santiment

DOT’s worth additionally registered a major uptrend over the final two days, in addition to a quantity enhance throughout the identical time. This aligns with the accumulation close to assist.

However, bearish market circumstances could have restricted any potential upside due to the heightened FUD ranges.

Conclusion

DOT’s sturdy assist is a wholesome signal of prevailing investor sentiment concerning its present worth level. It can also present a ramp on which the worth could bounce from. However, this doesn’t assure that the market is not going to expertise extra promote stress in the subsequent few days, doubtlessly main to extra draw back.

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