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DOT Dips Below $4.09 Amid Bearish Pressure; Selling Pressure Rises

source-logo  coinedition.com 19 September 2023 16:57, UTC

Polkadot‘s native cryptocurrency, DOT, gained positive momentum but gradually weakened after encountering a resistance level at the intraday high of $4.22. As a result of the bears’ relentless selling pressure, the price dropped below $4.09, where it found temporary support.

At press time, DOT was trading at $4.14, down 1.34% from its intraday high. Traders attempting to cash in on the recent price increase may be responsible for the modest decline in activity.

During the recession, DOT’s market capitalization dropped 1.33% to $5.070 billion, while its 24-hour trading volume increased 9.80% to $103.6 million. This contrast demonstrates that, despite the minor price fall, there is still substantial trading activity and interest in DOT. The uptick in trading volume shows that there may be renewed trust in the crypto after its brief stability around $4.09.

DOT/USD 24-hour price chart (source: CoinStats)

The DOT/USD True Strength Index (TSI) reading of 3.288, below the indicator’s signal line on the 4-hour time frame, indicates prevailing negative momentum. As a result of this pattern, the price of DOT may see more short-term weakness. A possible change in momentum toward bullishness would be indicated by an increasing TSI that crosses over its signal line.

Furthermore, the Average Directional Index (ADX) rating of 16.84 and going south indicates that the present trend in DOT/USD is relatively weak. This pattern suggests the market is not moving in any clear direction, which might lead to a period of consolidation or sideways trading.

DOT/USD 4-hour price chart (source: TradingView)

The negative momentum in DOT/USD is more significant than the bullish momentum, with the Aroon up (orange) reading of 57.14 and the Aroon down reading of 35.71 heading downwards. This trend indicates that DOT may be vulnerable to significant price drops soon.

Conversely, a reversal requires the Aroon up reading to rise and eventually exceed the Aroon down reading, signifying a change in momentum towards the bullish side.

In addition, the DOT/USD market is under selling pressure, as shown by the -0.18 rating and the southward direction of the Chaikin Money Flow indicator. This level adds to the crypto’s gloomy picture by indicating that money is leaving the asset. In light of this bearish trend, investors must proceed carefully and implement suitable stop-loss levels.

DOT/USD 4-hour price chart (source: TradingView)

In conclusion, Polkadot (DOT) faces short-term challenges as negative momentum persists, but renewed interest in trading activity hints at potential opportunities ahead.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.