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Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
Polkadot has been on a better timeframe downtrend. This downtrend started in early April. Earlier than that, the time interval from November to late February additionally noticed Polkadot submit heavy, constant losses. In March, a rally was seen, however this rally didn’t provoke a longer-term uptrend.
Bitcoin additionally struggled to carry on to the psychological $20k mark. A deeper dip might ship DOT plunging down the charts as nicely.
DOT- 12-Hour Chart
Supply: DOT/USDT on TradingView
In April and Might, wave after wave of relentless promoting strain noticed Polkadot drop from the $23 resistance degree, all the way in which to the $7.44 help. In Might, the worth was in a position to declare the $9 space as help, however couldn’t push previous the $10.5 resistance.
The second week of June noticed Bitcoin slip beneath the $28k space, and Polkadot additionally misplaced the $9 help zone. The $7.5 and $6.4 ranges have acted as help prior to now two weeks.
As DOT bounced to retest the $9 zone of former demand, a hidden bearish divergence (orange) between worth and momentum (RSI) was seen. Following this improvement, the worth dropped again beneath the $8 mark.
Rationale
Supply: DOT/USDT on TradingView
The RSI has tried to rise again above the impartial 50 line prior to now two weeks. Every of the three makes an attempt took the RSI increased. On the identical time, the worth fashioned decrease highs and signaled a hidden bearish divergence on two events prior to now week.
The latest one noticed DOT submit losses of practically 15%. Furthermore, the event of the hidden bearish divergence prompt that the downtrend might be set to proceed.
The OBV was additionally struggling to push above the sequence of practically equal highs it set in current weeks. This failure hinted at an absence of shopping for energy. Despite the fact that the CMF has been above +0.05 prior to now week, it may not sign a pattern reversal.
Conclusion
If the CMF falls again beneath the -0.05 mark, it could add proof to the already bearish outlook that Polkadot has on the charts. The indications confirmed that momentum was again in favor of the sellers, and the OBV confirmed that the patrons lacked energy. One other transfer to $6.4-$6.5 might be shut.
