As Bitcoin takes a rollercoaster ride, altcoins like Polkadot (DOT) are gearing up for their thrilling adventure in September. Let’s take a closer look at what’s happening in the world of DOT.
Market Volatility Galore
Bitcoin’s price is on a wild journey, currently hitting $25,750. This rollercoaster ride for the king of cryptocurrencies is sending shockwaves throughout the altcoin market. With Bitcoin’s value under threat, it might trigger some big selloffs.
DOT Takes a Hit
Polkadot didn’t escape the turbulence. August wasn’t kind to DOT, seeing a 16% monthly drop. The dominant force of Bitcoin’s decline is casting a shadow on DOT’s prospects. Bitcoin struggles to keep its head above $26,000, which could spell trouble for altcoins, especially when Saturday mornings often bring unexpected losses.
Weekend Volume Woes
The weekend brings another challenge – lower trading volumes. This could mean even more significant sell-offs in the crypto world. As for DOT’s price, it temporarily stopped its mid-August freefall at $4.32. This level has been a dependable support since June, aligning with the weekly uptrend order block of $4.22 - $4.59. This order block acted as a Saviour back in June, and history might repeat itself, giving the bulls a fighting chance.
Sellers Still in Control
Cumulative Volume Delta (CVD) started tapering off on August 30 but remained steady at the time of writing. This indicates that sellers are still calling the shots. Open Interest rates have risen since August 31, strengthening sellers’ short positions.
A Long Climb Ahead for DOT
Looking at the weekly chart, DOT hasn’t shown any signs of a comeback. The $4.2 region has been an unwavering support for weeks. The selling pressure might push it down to $3.68 if it crumbles. It’s worth noting that $DOT last visited these price levels back in August 2020, underscoring the bear market’s intensity.
Searching for a Silver Lining
Despite the gloomy outlook, there’s a glimmer of hope. A return to normalcy is expected in the macroeconomic arena in the coming months. For DOT to stage a comeback, it must break past the critical $5.15 mark, with a higher target at $6.9. In a dream scenario where a sharp reversal begins from the depths, DOT’s price would need to surge past $22. Remember, $DOT’s all-time high on Binance was a whopping $55.3.
So, as we navigate these turbulent crypto waters in September, keep an eye on DOT. There’s potential for a recovery, but the journey won’t be without its fair share of bumps and twists.
Disclaimer: This article aims to provide information and is not financial advice. Always research and use funds you can afford to lose when investing.
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