The cryptocurrency market has failed to escape the dominance of bears. Leading crypto Bitcoin (BTC) continues to close this week below the psychological support level of $20,000. In this environment, a popular crypto analyst says that the rival of leading altcoin Ethereum, Polkadot (DOT), is trending bearish from a fundamental perspective.
“Polkadot is still pumping, but fundamentals are in trouble for altcoin”
As you follow on Kriptokoin.com, the crypto market is struggling to recover. The anonymous server of InvestAnswers, a cryptocurrency YouTube blood, shared his predictions for the market. The analyst notes that despite Polkadot’s positive move in terms of price, on-chain activity looks bleak. In this context, the analyst makes the following assessment:
I looked at some data from Subscan on The Block Crypto. Here it is possible to see that the total new addresses are only 1,100 on the seven-day moving average. So this is basically the lowest level in a long time since December 2020. Blockchain is not doing well when it comes to attracting new users. As we progress, the number of daily active users is also decreasing. Polkadot is still pumping today. But when you look at the basics, it’s not very good. We’ll see. Again, we have great faith in efficiency in Blockchain.
Polkadot technical price analysis
Crypto analyst Akashnath S provides the following technical analysis for Polkadot. Polkadot (DOT) managed to climb to the $7.7 mark after stable demand. However, as fear gripped the market once again, buyers quickly turned into sellers. The altcoin has been trading in the $7.7 and $6.9 region for most of the past two weeks. The Volume Profile Visible Range tool showed Checkpoint lying at $7.25. This was the point where the most trading volume was seen in the visible range. It marked a key support level that the DOT had left behind the previous day.
DOT price chart / Source: TradingViewValue Area Low (VAL) and High, $7.03 and $7.64. At the time of writing the price was below VAL. VAL represented a good buying opportunity. However, a drop below $7 means long positions can be unsafe. A revisit to $7 and $7.3 is possible as the price seeks liquidity. However, the $7.25-7.3 belt will likely create too much resistance for DOT to pass in its first few tries.
DOT Relative Strength Index (RSI) / Source: TradingViewThe Relative Strength Index (RSI) fell from 60 to 22 during the previous day’s trading. Moreover, the Moving Average Convergence Divergence (MACD) also saw a sharp decline below the zero line. It was quite clear that the bearish momentum was dominant in the last hours. But is a charity rally possible for the DOT?
The Accumulation/Dispersion (A/D) indicator also saw a decline. It remained below last week’s resistance level. A rejection at this level could herald further losses. Chaikin Money Flow (CMF) also pointed to a bearish trend. It was definitely below the -0.05 mark to show significant selling pressure.
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