Polkadot price suffers bearish pressure despite continued network developments. The latest in the blockchain upgrade is the asynchronous backing which is aimed at improving scalability and parachain interoperability. DOT price dropped 2.8% in the last 24 hours to trade around $5.68 during U.S. business hours.
Low Volume, Open Interest, High L/S Ratio Suggests Investors Are Hoarding
Despite the drop in Polkadot price, on-chain metrics remain bullish. The falling price does not necessarily mean investors are dumping their bags as data from Polkadot Subscan shows daily holder count is at an all-time high of 1.3 million, with 321 new additions onver the last 24 hours. Additionally, daily active users surged by 19.21% and on-chain volume hit an all-time highsignaling the network is active and well.
According to CoinGecko, the 24-hour volume for DOT increased by 23%. However, zooming out, a steady decline in trading volume since July 5, when the asset hit its yearly low, is noticeable. This suggests there is weak buying pressure and a lack of bullish interest.
Additionally, Coinalyze data shows open interest is low, increasing only 0.12% in the last 24 hours. Nevertheless, the Long/Short ratio is 2.83, with 73.86% of traders across exchange betting Long on the asset. This indicates the market may be fearful in the short term, but optimistic in the long term.
Polkadot Price Analysis: DOT Bears Eye $4.91 If They Beat This Obstacle
Polkadot price chart shows a downward trend with the value consistently below the 50-day and 200-day EMAs. Candlestick analysis reveals a potential for the bearish momentum to continue but a major support at the recent psychological low of $5 may hold the price up.
Polkadot price is in a consolidation zone which has lasted about 1.5 months. A break below the $5 support level may result in further downside movement to $4.91 (yearly low). Conversely, if bulls prevail, DOT price may encounter major resistanc around $6.17 (50-day EMA) and a relatively small barrier around $6.77 (200-day EMA). Beyond this, $7.00 presents a strong resistance level.
The Relative Strength Index (RSI) is at 40.90, indicating bearish momentum but approaching oversold territory. The Chaikin Money Flow (CMF) is at 0.04, showing neutral to slightly positive money flow. This suggest capital inflow to Polkadot is minimal but still present.
The Moving Average Convergence Divergence (MACD) is below the signal line, indicating bearish momentum. Overall, the technical indicators suggest Polkadot price may continue in a corrective wave downwards, likely testing lower support levels.
Daily DOT holder count is at an all-time high of 1.3 million, while daily active users surged by 19.21%.
Positive on-chain metrics suggest DOT price crash is may not be internal issue.
The post Polkadot Price Likely to Crash 13% Despite Recent Protocol Upgrade appeared first on CoinGape.
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