Polkadot [DOT] struggles to activate bullish thesis as price topples below $40

Polkadot [DOT] had rejoined a period of consolidation since the last week of April after quite an eventful first quarter. The price movement has been mixed and mostly sideways. The recent market pullback, however, brought the multi-week uptrend to halt. 

As the seller took over the market, the DOT token noted its weekly loss extend to 11.09%

Polkadot [DOT] was priced at $36.13 after sustaining more than 10% losses over the past 24-hours alone. It registered a market cap of $35.33 billion and a 24-hour trading volume of $4.31 billion, at the time of writing. 

Polkadot [DOT] Daily Price Chart:

DOT went on a downturn after hitting new highs earlier last week. As the bears invaded the price of the defi token, the upsloping moving averages attempted to breach above the candlestick arrangement.

The 50 DMA [Pink[ did move over the DOT price candles while the 100 DMA [Blue] hovered close to it. The placement of the moving averages along with the decreasing gauge between the two was indicative of increasing bearishness in the coin market. 

Hence, a potential bearish crossover by the two moving averages in the near term could be very damaging for the crypto-asset. 

The volume, on the other hand, remained consistent and has not stumbled in tandem with the price action. 

The Klinger Oscillator rejected a bullish crossover with the signal line which depicted that a positive flip could take a while. The Chaikin Money Flow [CMF] also dropped from its previous highs and was heading towards the zero line suggesting an outflow of capital from the coin market.

The RSI also dropped below the 50-median line as sell-off sparked in the DOT market.

If the bulls do indeed recover and the buying pressure rises, Polkadot may strive to target immediate resistance levels of $41.46 and $47.93 respectively. However, a spike selling pressure in the coin market could bring support levels of $31.38 and $28.7 at play