Movement

Polkadot

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You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/polkadot-faces-price-drop-and-potential-recovery/" data-wpel-link="internal">Polkadot Faces Price Drop and Potential Recovery</a> 
Polkadot’s (<a href="https://en.coin-turk.com/polkadot-dot-experiences-double-digit-decline-amid-reduced-blockchain-activity/" data-wpel-link="internal">DOT</a>) price saw an 18% drop last week. The global economic collapse on Monday caused DOT to fall below the $5 price level for the first time since November 2023. On the same day, DOT dropped to $3.75 before recovering. Currently trading at $4.48, DOT seems poised to make a move towards the $5 level. 
<h2 style="text-align: justify" id="polkadot-analysis">Polkadot Analysis</h2> 
An analysis of DOT’s daily chart shows that existing technical indicators suggest increased selling pressure could hinder the price from rising to $5. As of the time of writing, DOT’s Directional Movement Index (DMI) indicators show the negative directional indicator (-DI) (red) is above the positive directional indicator (+DI) (blue). 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-377807" style="text-align: justify" src="https://coin-turk.com/wp-content/uploads/2024/08/dot-polkadot-coin-turk-com.png" alt="" width="487" height="220"> 
The DMI value of the analyzed asset reveals the strength and direction of the <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market</a> trend. A downtrend gains strength when the +DI line is below the -DI line. This indicates that sellers are stronger than buyers in the market. The widening distance between the DI and +DI adds strength to the downward momentum. For DOT, the -DI line is at 40.69 while the +DI line is at 6.20, which is significant. 
Additionally, DOT’s 20-day exponential moving average (EMA) (yellow) and 50-day simple moving average (SMA) (blue) are noted to be below. 
A 20-day EMA is a short-term moving average that quickly reflects price changes. It shows the average closing prices over the last 20 days. On the other hand, the 50-day SMA is a longer-term indicator showing the average closing prices over the last 50 days. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-377808" src="https://coin-turk.com/wp-content/uploads/2024/08/polkadot-dot-2-coin-turk-com.png" alt="" width="486" height="221"> 
<h2 style="text-align: justify" id="dot-price-predictions">DOT Price Predictions</h2> 
DOT’s 20-day EMA and 50-day SMA could act as resistance levels. Attempts by bulls to move above these levels could trigger selling pressure and continue the downtrend. In such a scenario, DOT’s price could drop to $3.59, the lowest level in nine months, seen on Monday. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-377809" src="https://coin-turk.com/wp-content/uploads/2024/08/polkadot-dot-3-coin-turk-com.png" alt="" width="488" height="222"> 
However, a possible trend reversal and market recovery could positively impact DOT. If DOT moves above the moving averages, the price target could be $6.76. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/polkadot-faces-price-drop-and-potential-recovery/" data-wpel-link="internal">Polkadot Faces Price Drop and Potential Recovery</a></h5>
The post <a href="https://en.coin-turk.com/polkadot-faces-price-drop-and-potential-recovery/" data-wpel-link="internal">Polkadot Faces Price Drop and Potential Recovery</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Polkadot Faces Price Drop and Potential Recovery

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