Movement

when

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/polkadots-price-dips-sharply" data-wpel-link="internal" rel="noopener noreferrer nofollow">Polkadot’s Price Dips Sharply</a><br></p>
<p style="text-align: justify">Last week saw Polkadot’s (DOT) price plummet by 18%, largely impacted by a global economic downturn on Monday, causing it to dip below the $5 mark for the first time since November 2023. DOT briefly hit $3.75 before recovering to its current trading value of $4.48. Despite the recent rebound, the cryptocurrency faces significant selling pressure, making it uncertain whether it can climb back to the $5 level.</p>
<h2 id="what-do-technical-indicators-suggest">What Do Technical Indicators Suggest?</h2>
<p style="text-align: justify">Analyzing DOT’s daily chart reveals that the technical indicators point towards increasing selling pressure. The Directional Movement Index (DMI) shows the negative directional indicator (-DI) surpassing the positive directional indicator (+DI). This suggests that sellers have a stronger hold on the <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">market</a> compared to buyers, as evidenced by the -DI standing at 40.69, while the +DI is at 6.20. The growing gap between these indicators strengthens the downtrend.</p>
<h2 id="will-moving-averages-act-as-resistance">Will Moving Averages Act as Resistance?</h2>
<p style="text-align: justify">Additionally, DOT’s 20-day exponential moving average (EMA) and 50-day simple moving average (SMA) are positioned below the current price levels. The 20-day EMA, a short-term indicator, reflects recent price volatility, while the 50-day SMA provides a longer-term perspective. Both these moving averages could serve as resistance points, potentially triggering further selling pressure if bulls attempt to push the price above these levels.</p>
<h2 id="concrete-investor-takeaways">Concrete Investor Takeaways</h2>
<p style="text-align: justify"><strong>Investors should consider the following:</strong></p>
<ul>
 <li>Watch the DMI indicators closely for potential shifts in market sentiment.</li>
 <li>Monitor the 20-day EMA and 50-day SMA as key resistance levels.</li>
 <li>Be cautious of the price dropping to $3.59 if selling pressure continues.</li>
 <li>Potential price target could be $6.76 if a trend reversal occurs.</li>
</ul>
<p style="text-align: justify">The technical indicators and moving averages currently portray a challenging scenario for DOT. The resistance at the 20-day EMA and 50-day SMA levels could continue to pressure the price downwards, possibly to $3.59, the lowest level seen in nine months. However, a market recovery could see DOT surpass its moving averages, aiming for a price target of $6.76. Investors must remain vigilant and consider these critical levels when making trading decisions.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/polkadots-price-dips-sharply" data-wpel-link="internal" rel="noopener noreferrer nofollow">Polkadot’s Price Dips Sharply</a></h5>

Polkadot’s Price Dips Sharply

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