Polkadot is in a short-term range, but long-term sellers remain strong

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

  • Polkadot is trending lower on price charts after dropping below $7.7
  • The main resistance area was above the DOT, while the downside targets are as low as $5

Bitcoin [BTC] Some good news from a fundamental point of view. according to tracksBitcoin’s energy consumption increased by 2% in the last quarter compared to the second quarter of 2022. However, the hash rate increased by 6%. This can be attributed to stronger and more efficient mining hardware.

This is the AMBCrypto price prediction for Polkadot [DOT] year 2022

Polkadot price [DOT] It tested the July low of $6 in late September. In recent weeks, the price has consolidated just above these lower levels. There hasn’t been a strong trend yet, but the slow losses in the past month mean that more downside may be imminent.

The liquidity and resistance area at the psychological level of $7

Source: DOT / USDT on TradingView

In July and early August, the price had a strong bullish outlook on the daily time frame. It made a series of higher lows and higher tops, but the trend was broken in mid-August. The breakout in the market structure then meant that the long-term bias assumed a bearish outlook.

Sellers were forced further lower in September when the price collapsed through the $6.8 support to visit the $6 lows from July. In fact, these lows were not visited for more than a year before July.

Higher time frame charts, such as three-day or weekly, are showing $6.3 and $5.6 to be significant levels of support for the DOT as well. The Fibonacci extension levels (in yellow) showed the levels of 23.6% and 61.8% at $6.11 and $5. Therefore, a drop below $6.1 could reach a depth of $5 on the price charts.

With the Relative Strength Index (RSI) below 50 and neutral and the Unbalanced Volume (OBV) dropping, a drop below $6 is likely. Indications of bearish momentum and selling intensity are clear.

The charts on the lower time frame showed the formation of a range from $6.1 to $6.6. Therefore, a move below $6.1 may be an early sign for both bulls and bears to pay more attention. On the other hand, the daily session near above $6.6 indicates that buyers have found some strength.

Development activity is going strong, but investors may want to wait

Polkadot is in a short-term range, but long-term sellers remain strong

Source: feeling

Social dominance peaked in August, rivaling the highest value the scale has touched in the past three months. Then, in late September, the dominance scale recorded another local peak, but it was nowhere near August.

In the past month, Polkadot’s price has fallen by 20%. However, the development activity behind the $7.1 billion market price protocol has rebounded. This indicates that investors with a longer time frame do not need to fear a lack of effort from the developers.

Bitcoin eventually held the key to the next stage across the crypto market. A return to above $20.8K could see the DOT rise above $7, invalidating the published bearish theory. But Bitcoin is showing signs of weakness, and another drop to $18.6K may not be easily absorbed by buyers. This could bring the DOT down to $5.07.

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