Polkadot’s [DOT] attempts to break free from rangebound price action stalls

After a prolonged mundane price action, the cryptocurrency market posted a recovery. Polkadot [DOT] also capitalized on the market movement as it reduced its weekly loss to 2.28%. The DeFi token had earlier suffered a freefall and is still stuck in a tight range between $14-$16. However, the volatility in the market has picked up which could potentially ensure a much-needed break.

Over the past 24-hours, Polkadot [DOT] retraced by 2.29% pushing its price down to $15.93. At the time of writing, the digital asset registered a market cap of $15.25 billion and a 24-hour trading volume of $1.40 billion.

Polkadot [DOT] Daily Price Chart:

Polkadot [DOT] suffered one of the most damaging setbacks following the crash. It was currently hovering close to levels not seen since January this year ultimately falling below all the moving averages. Soon, the 50 DMA [Pink] sustained a bearish crossover with the 100 DMA [Blue]. Shortly thereafter, a death cross materialized with the 200 DMA [Yellow] further indicating the growing bearishness in the coin market.

The volume has noted a minor uptick that could aid in DOT’s growth.

The dotted markers of Parabolic SAR have continued to resist an upward breakout depicting that bears still have the upper hand. The MACD underwent a bullish crossover as the market recovered slightly which was indicative of a minor increase in demand. The Relative Strength Index [RSI], however, was lingering in the oversold conditions, meaning the sellers have been dominating the realm.

After a tight consolidation, the uptick that spun out appeared to pause as sellers made a headway. The moving averages too acted as critical resistance points for Polkadot. The bears might try to sink the price to a low of $8.01 if the crypto-assets defense fails.

On the contrary, for it to target highs of $39.7 and $45.9, DOT must first breach the DMAs that stood at levels $23.9, $25.8, and $30.71 respectively.