Home CryptocurrencyAnalysis Polkadot suffers 10% weekly loss on Hawkish Fed

Polkadot suffers 10% weekly loss on Hawkish Fed

by SuperiorInvest

They provided Polkadot insiders with key data to shed light on the protocol’s achievements. Currently, these achievements are very useful for the overall “well-being” of the DOT. However, the value of the coin fell along with the rest of the crypto and financial market.

Will this decline be a great buying opportunity for investors?

Markets are under strong selling pressure. The worry sparked by the September 13 annual inflation report remains with us today.

Total market capitalization for DOT fell 15.3 percent from $8.75 billion to $7.44 billion. Polkadot shed 10% weekly loss after the US central bank’s not-so-rosy assessment of inflation. At the time of writing, DOT is trading at $6.33which is down 8.6 percent over the past seven days, Coingecko data shows.

These numbers are not the only ones that affect market prices. The current 0.75 percent increase in interest rates by the Federal Reserve inevitably has a negative effect on prices. If the situation worsens significantly, it will have a negative impact on the DOT value.

How soon will the price increase?

Is there any way for the DOT to recover quickly despite the general gloom in the financial markets?

If you look at the daily tick indicators, you can see that DOT has met resistance around $8.06.

The price drop on September 13 corresponds to this. The price was rejected again after hitting the $7.07 price resistance, sending it down to the $6.12 support level.

Here’s where you can see the Polkadot Rally

Indicators suggest that the $6.12 support is creating positive momentum. Any significant momentum generated during this period could help the bulls break the $7.07 resistance level.

The growing bullish forecast may indicate that Polkadot’s recent successes are affecting investor confidence.

Chart: TradingView.com

The positive turn of the indicators is in line with recent tweets from @PolkadotInsider. The number of investment projects on the protocol is one of the most notable achievements of the Polkadot ecosystem.

DFG Global led the list with 52 projects, followed by AU21 Capital with 39 and Hypersphere with 35.

This tweet was recently posted on September 22nd. After that, the price rose to $6.44. As of this writing, DOT appears to be preparing a subassembly.

After a detailed examination of the data, the token last settled at $6.48, its previous high. This upward trend is reflected in investor sentiment.

Together, the Momentum Indicator, Commodity Channel Index and Stoch RSI are currently rising. This biased behavior suggests that investor sentiment is rather positive, even in volatile circumstances such as the present.

DOT’s previous market activity also coincided with the XABCD harmonic pattern, which may 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

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