Polkadot [DOT] bulls take a breather before next leg up

After a remarkable uptrend, Polkadot [DOT] took a breather near the overhead resistance. The broader cryptocurrency market’s uptrend also halted as the cumulative valuation stood at $1.54 trillion. As a result, a squeeze in volatility was observed for many crypto-assets including Polkadot. This poses a threat to its price release above a key level.

DOT had previously failed to deviate from the mild rebounds underpinning most cryptocurrencies off the June low. In the following month as well, for the most part, sellers have largely been in control of Bitcoin prices, which has had a domino effect on other altcoins as well. However, DOT gained significant strength depicting an investor engagement with the digital asset.

Over the past 24-hours, Polkadot [DOT] noted a decline of 0.62% and was currently being traded at $14.61. At the time of writing, the digital asset recorded a market cap of $14.69 billion and a 24-hour trading volume of $1.098 billion.

Polkadot [DOT] Daily Price Chart:

Polkadot’s [DOT] price was steadily rising since hitting multi-month lows on 21st July. It neared the 50 DMA [Pink] after more than two months of facing resistance. The moving average was sloping downwards after sustaining a death cross and a bearish crossover with the 200 DMA [Yellow] and the 100 DMA [Blue] respectively. If the DOT candles manage to reclaim the moving averages, a fresh bost could take the price of the digital asset.

The volume has been moderate on the daily price chart which could aid in the asset’s growth.

The consistently declining green closing bars of Awesome Oscillator [AO] depicted a trend of weak bullish momentum. The Chaikin Money Flow [CMF] was yet to climb above equilibrium. The RSI finally broke above the 50-median line indicating a renewed sentiment of increasing buying pressure in the market.

Polkadot bulls appear to have relaxed their ambitions. To re-establish confidence, the asset will first need to breach the moving averages at $16.2, $23.67, and $26.93 to aim for yearly highs. On the other hand, the support levels stood firm at $10.83, and $5.05 respectively.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.