Polkadot (DOT) is looking to recover after bears pushed its value down significantly on Friday and Saturday, with the price falling by 13.21% and 11.88%, respectively.
The price recovered on Sunday, registering an increase of 7.54%, but it could not break through the 200-day SMA, which was acting as resistance.
Can Polkadot (DOT) Continue Upward Momentum
Polkadot (DOT) spent most of the previous week in the red as bearish sentiment tightened its grip. By Saturday, its value had dropped to a low of $5.74 before recovering and eventually closing at $6.38. Saturday’s session saw DOT slip below the 200-day SMA as well. However, Sunday began on a far more positive note, with DOT rising by 7.54%. However, with the 200-day SMA now acting as resistance, DOT was unable to move past $6.86, at least on Sunday. DOT remains in the green during the ongoing session and is currently up by 3.53%. More importantly, it has moved past the 200-day SMA and the $7 mark and currently sits at $7.10.
So, can DOT sustain this recovery, and could we see sustained bullish sentiment as we begin the new week? Looking at a few indicators can give us an idea. Currently, the Parabolic Sar is bearish, indicating a downward trend. However, with DOT crossing above the 200-day SMA, the price could find support at the $7 mark, helping it build a platform from which it could move towards the $7.50 mark. Should this happen, DOT can face resistance at $8 and $8.45, where the 20-day SMA could act as resistance.
The RSI had dipped under 30 on Saturday, indicating that DOT was oversold. This is when buyers jumped in, purchased DOT, and pushed the price upwards. The RSI currently stands at 35, but its proximity to oversold territory could indicate that we could see the DOT price continue to recover, at least for the time being. The MACD is also currently bearish but could flip if DOT is able to maintain its current upward trajectory.
Volume Takes Sharp Fall
Transaction data also shows that DOT trading volume has registered a drop of 42%. This indicates that while we are seeing new investors purchase DOT, a majority of investors are possibly holding on to their assets and watching how the markets progress.
An Important Week For Polkadot (DOT)
Despite its somewhat muted market sentiment, Polkadot has seen significant developments over the past week. The network saw a significant increase in new users, with wallet addresses hitting 600,000 by the end of March. Out of these, 41% were attributed to Moonbeam, while a further 191,000 addresses were created on Polkadot itself. The network also saw an increase in unique accounts, which rose to 5.59 million.
The Polkadot governance forum also announced it was considering a proposal to promote the network at the Paris Olympic Games through a $160,000 bike branding deal. The community also used an on-chain community vote and selected IndyCar racing star Conor Daly as Polkadot’s brand ambassador for the upcoming Indianapolis 500. This marks the first time a major athlete’s sponsorship has been decided through a community vote via blockchain technology.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
