Polkadot Suffers 10% Weekly Loss On Hawkish Fed – Time To Buy DOT?
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Polkadot insiders have provided key information to shed light on the protocol’s success. As it stands, these accomplishments are extremely beneficial to the overall “well-being” of the DOT. However, the value of the coin has fallen alongside other crypto and financial markets.
Is this recession a good buying opportunity for investors?
There is strong sales pressure on the market. The worry caused by the September 13 annual inflation news is still on our minds.
DOT’s market capitalization fell 15.3 percent from $8.75 billion to $7.44 billion. Polkadot has given up a 10% weekly loss following the US Federal Reserve’s not-so-rosy inflation estimate. At the time of writing, DOT is trading at $6.33, down 8.6 percent over the past seven days, Coingecko data shows.
These numbers are not the only ones that affect market prices. The Fed’s current rate hike of 0.75 percent will inevitably have a negative impact on pricing. If things get much worse, this will have a negative impact on the value of DOT.
How soon will the price rally happen?
Is there any way for the DOT to recover quickly despite the general gloom in the financial markets?
Looking at the daily tick indicators, it can be seen that DOT has encountered resistance around the $8.06 mark.
The September 13 price drop is consistent with this. Once again, the price was rejected after reaching the $7.07 price resistance, dropping to the $6.12 support level.
Here the Polkadot rally can be seen
Indicators suggest that the $6.12 support is creating positive momentum. Any significant momentum generated during this period could help the bulls break above the $7.07 resistance level.
The increasingly optimistic forecast may indicate that Polkadot’s recent achievements are affecting investor confidence.
The positive turn in the indicators is in line with @PolkadotInsider’s recent tweets. The number of investment projects of the protocol is one of the most significant achievements of the Polkadot ecosystem.
Apparently this #CryptoWinter doesn’t slow us down; we continue to invest and support the most promising projects in this area. 💪
Thanks for all our great portfolios! Let’s keep making history! 🚀 https://t.co/GbMIbpLLfy
— DFG (@DFG_OfficiaI) 22 September 2022
DFG Global leads the list with 52 projects, followed by AU21 Capital with 39 and Hypersphere with 35.
This tweet was recently posted on September 22nd. The price then rose to a high close of $6.44. As of this writing, it appears that DOT is preparing an emergency appeasement.
After a detailed look at the data, the token last settled at $6.48, its previous high. This growing trend is reflected in investor sentiment.
Together, the momentum indicator, the commodity channel index and the Stoch RSI are currently on the rise. This trending behavior suggests that investor sentiment is quite good, even in volatile conditions like the current one.
DOT’s past market action also 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