To shed light on the protocol’s successes, Polkadot insiders have been providing key data. As it stands, these accomplishments are very helpful to the overall ‘well-being’ of DOT. However, the coin’s value has been down alongside the rest of the crypto and financial market.
Is this downturn going to be a great chance to buy for investors?
Markets are under intense selling pressure. The worry that the year-on-year inflation news on September 13 caused is still with us today.
The overall market cap for DOT fell by 15.3 percent, from $8.75 billion to $7.44 billion. Polkadot has shed 10% weekly loss on the heels of the U.S. central bank’s not so rosy inflation assessment. As of this writing, DOT is trading at $6.33, down 8.6 percent in the last seven days, data from Coingecko show.
These figures are not the only ones affecting market prices. Inevitably, the current interest rate hike of 0.75 percent by the Federal Reserve is seen to have a negative effect on the pricing. If things get much worse, this will have a negative impact on the value of DOT.
How Soon Will The Price Rally Occur?
Is there any way for DOT to recover quickly despite the general gloom in the financial markets?
If one looks at the daily tick indicators, one can see that DOT has been met with resistance around the $8.06 mark.
The price drop on September 13th is consistent with this. Once again, the price was rejected after reaching the $7.07 price resistance, sending it tumbling to the $6.12 support level.
Here’s Where Polkadot Rally May Be Seen
Indicators have suggested that the $6.12 support is generating positive momentum. Any significant momentum generated during this period can help the bulls break past the $7.07 resistance level.
The increasing optimistic forecast may suggest that Polkadot’s recent accomplishments are influencing investor confidence.
The positive reversal on indicators aligns with recent tweets from @PolkadotInsider. The amount of investment projects on the protocol is one of Polkadot’s ecosystem’s most remarkable achievements.
DFG is honored to be the No.1 #venture by @PolkadotInsider! 🏆
Apparently, this #CryptoWinter doesn’t slow us down; we keep investing and supporting the most promising projects in this space. 💪
Thank you for all our terrific portfolios! Let’s continue to make more history! 🚀 https://t.co/GbMIbpLLfy
— DFG (@DFG_OfficiaI) September 22, 2022
DFG Global led the list with 52 projects, followed by AU21 Capital with 39 and Hypersphere with 35.
This tweet was recently published on September 22. Following this, the price rose to a $6.44 high close. As of this writing, it appears that DOT is preparing a relief rally.
Upon detailed examination of the data, the token’s last settlement occurred at $6.48, its previous peak. This growing trend is reflected in the sentiment of investors.
Together, the momentum indicator, the commodities channel index, and the Stoch RSI are currently rising. This inclining behavior suggests that investor sentiment is rather upbeat, even in volatile circumstances such as the present.
DOT’s prior market activity likewise matched the XABCD harmonic pattern, which can advise investors and traders to buy the dip.
DOT total market cap at $6.9 billion on the daily chart | Source: TradingView.com Featured image from The Daily Hodl, Chart: TradingView.com
XRP Price Is On The Rise But Have The Bulls Regained Momentum?
XRP Price has met with selling pressure again after it slipped from the $0.37 price mark. The altcoin has been consolidating over the past one week and over the last 24 hours, it lost 1.2% of its market value. In the last seven days, XRP price depreciated close to 8%.
Confidence from buyers started to fade given how long XRP has traded below its immediate resistance mark. Broader market weakness has also set it given Bitcoin’s move to $20,800 at press time. The technical outlook for Cardano (ADA) has turned bearish which was seen by the number of sellers in the market.
Due to a lack of demand for Cardano, selling strength had taken over the chart. The altcoin was trading quite close to its closest support level. The continued price action could push the XRP price to the next support line. In order for the bulls to be back, it is important that demand for XRP pushes up over the immediate trading sessions.
Cardano Price Analysis: Four-Hour Chart
The altcoin was trading for $0.34 at the time of writing. XRP was trading quite close to the closest support level hence, could soon fail to defend the $0.34 support line. The next support level for the coin stood at $0.31.
XRP’s overhead resistance was at $0.37, the bulls were rejected from that price mark as recently as a few trading sessions ago. If XRP continues to struggle below the $0.37 mark, it could revisit $0.29 over the next trading sessions. The trading volume of XRP shot up on the chart, this indicated that the selling pressure has mounted.
The altcoin registered a fall in the buying strength at press time. Broader market weakness could be blamed for the recent fall in XRP price.
The Relative Strength Index was parked under the half-line and that meant selling pressure overpowering buying strength.
XRP price moved below the 20-SMA indicating lesser demand and that sellers were driving the price momentum in the market.
The recent fall in price hasn’t been reflected in the other technical indicators as seen on the chart. XRP continued to display a buy signal. Moving Average Convergence Divergence indicated the price momentum and if there were chances of a possible reversal.
MACD pictured green signal bars on the half-line which are indicative of a buy signal, however, the signal bars were diminishing in size. This indicated selling strength taking over. The Directional Movement Index read the price momentum and direction.
DMI was still positive as the +DI line was above the -DI line but +DI noted a sharp fall. Average Directional Index (red) was below 20 portraying that the bullish strength has completely lost strength. Buyers and broader market strength could help the coin recover.
Not-So-Diamond-Hands: Bitcoin Long-Term Holders Have Shed 150k BTC Since LUNA Crash
Data shows the total supply held by the Bitcoin long-term holders has decreased by 150k BTC since the LUNA crash.
Bitcoin Long-Term Holders Have Dumped A Noticeable Amount In The Last Few Months
According to the latest weekly report from Glassnode, the BTC LTHs have observed a sustained decrease of 150k BTC since the crash in May.
The “long-term holder” (or LTH in brief) group is the Bitcoin cohort that includes all those investors who have been holding onto their coins since at least 155 days ago, without selling or moving them. The holders who sell earlier than this threshold are called the short-term holders (STHs).
LTHs are generally the most resolute investors in the market and thus large selling from them doesn’t happen too often. Generally, the more amount of time a holder has held their coins for (that is, the more aged the LTH has become), the less likelier they become to sell at any point.
Here is a chart that shows the trend in the total Bitcoin supply held by these LTHs during the past year:
The value of the metric seems to have been trending downwards in recent months | Source: Glassnode's The Week Onchain - Week 33, 2022
As you can see in the above graph, the Bitcoin supply owned by LTHs seems to have been mostly moving sideways since around November of last year.
The indicator set a high during the month of May of this year, but since then the metric’s value has been on a steady decline.
The beginning of this sell-off from the LTHs seems to have been around the LUNA and UST collapse, an event that triggered a market-wide crash in crypto.
The report notes that the current 155-day long-term holder threshold lies in March, when the price of Bitcoin observed its first relief rally to $46k since the decline from the all-time high.
While the latest selling from the LTHs amounts to just 150k BTC, which is quite small compared to their total supply of around 13.4 million BTC, the report explains that the LTH reserve doesn’t have to significantly decrease for the cohort to go through a capitulation event.
Related Reading: Flippening Forewarning? Ether Options Overtake Bitcoin As The Top Crypto To Trade
In past such capitulations, the LTH supply has only slightly decreased with the weakest investors being eliminated, and stronger accumulation filling up for them.
At the time of writing, Bitcoin’s price floats around $23.4k, down 4% in the past week.
Looks like the value of the crypto has been going down in the last few days | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Glassnode.com
Polkadot Price Moves Above $8, Sets Eye On $9
Polkadot price has steadied itself above the $8 price mark. The coin seems to be extending the price recovery as DOT looks at moving past its next price ceiling. It also formed a bullish pattern on its daily chart.
The cup and handle pattern that Polkadot has been forming for the past two months indicate that the bulls were strong in the market. The cup and handle pattern usually indicates a bullish continuation of price. Over the past week, Polkadot price surged over 24% marking strong recovery.
DOT has been among the highest gainer within the top 10 cryptocurrencies based on market cap. In the last 24 hours itself, Polkadot price rose 6%. Technical indicators have painted bullishness on the chart with DOT exhibiting chances to break past $9 price ceiling.
Polkadot has struggled for a significant amount of time as price of the asset remained below the $9 price mark. Buying strength despite a recent fall shot up indicating that bulls were in control of the price.
If DOT manages to break past the aforementioned price ceiling, then the uptrend would invalidate chances of bears reclaiming the price.
The global cryptocurrency market cap today was $1.13 Trillion and it noted a 1.1% increase over the last 24 hours.
Polkadot Price Analysis: Four Hour Chart
DOT was trading for $8.38 at the time of writing. A slight push from the bulls can send Polkadot price above $9 price mark. Ever since the middle of June, Polkadot struggled to break past the aforementioned price ceiling.
If DOT manages to trade above the $9 price mark for a significant amount of time, it could attempt to trade in double digits. A fall from the present price level will cause the altcoin to touch the $7.40 support line.
Polkadot price has formed higher highs on the four-hour chart, so chances of a price correction cannot be ruled out. Volume of DOT traded fell considerably in the previous trading session which was a sign of decreased buying strength. At press time, however, the technical outlook pointed towards an increase in buying pressure.
The altcoin Polkadot was positive on the four-hour chart as the major indicators pointed towards the same. As the asset formed higher highs, buying strength also resurfaced. The Relative Strength Index was pictured above the half line as buyers regained confidence signalling bullishness.
A tiny downtick on the RSI is visible, which meant that going forward DOT may lose its current price momentum. If buying strength remains consistent, a move above $9 is certain. Polkadot price was just above the 20-SMA line which signals that buyers were driving the price momentum in the market.
Related Reading | Polkadot Loses Steam As DOT Sheds 10% After Weekly Gains
DOT continued to indicate positive price action on the four hour chart. Moving Average Convergence Divergence depicts momentum and price direction. MACD painted a green signal bar which is the beginning of a buy signal after undergoing a bullish crossover.
Bollinger Bands determine the price volatility and possibility of fluctuations in the same. The bands remained parallel which is a sign of constricted price action with less price volatility. Increase in buying strength can help Polkadot price to break its immediate price ceiling.
Related Reading | Solana Hot Wallets Suffer Ongoing Attack, Roughly $5M Stolen Thus Far
Featured image from PixelPlex, chart from TradingView.com
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