Will Polkadot (DOT) Price Drop to $5 Amid Declining Value?

Analysis1mos agoreleased 6086cf...
31 0

In Brief

  • Polkadot’s price in a descending channel is set to test the lower trend line after failing to breach the upper line.
  • Relative Strength Index also did not succeed in crossing the neutral line, returning to the bearish zone.
  • The Sharpe Ratio at -4.35 is a testament to the lack of incentives DOT is offering the investors.
  • promo

    var rnd = window.rnd || Math.floor(Math.random()*10e6);
    var pid588602 = window.pid588602 || rnd;
    var plc588602 = window.plc588602 || 0;
    var abkw = window.abkw || ”;
    var absrc = ‘https://servedbyadbutler.com/adserve/;ID=177750;size=0x0;setID=588602;type=js;sw=’+screen.width+’;sh=’+screen.height+’;spr=’+window.devicePixelRatio+’;kw=’+abkw+’;pid=’+pid588602+’;place=’+(plc588602++)+’;rnd=’+rnd+’;click=CLICK_MACRO_PLACEHOLDER’;

Polkadot (DOT) price has stagnated recently, failing to exhibit significant upward momentum. Instead, the prevailing bearish pattern suggests the likelihood of further declines in the near future.

This could dent the value of the altcoin, which is already taking a hit, pushing it farther away from being investors’ pick.

Polkadot Is Not Wanted

Different investors anticipate Polkadot’s price to rise and fall. However, the altcoin is seemingly responding to the bearish requests, which is evident in the supply metrics, particularly the Sharpe Ratio.

The Sharpe ratio measures the risk-adjusted return of an investment, indicating how much excess return an investment generates per unit of risk. A higher Sharpe ratio suggests better risk-adjusted performance.

On the other hand, a negative Sharpe Ratio means losses for the asset since the risk-adjusted returns are completely invalidated. This is the case with DOT, whose ratio is at -4.32, suggesting a lack of incentives for traders and investors.

Will Polkadot (DOT) Price Drop to  Amid Declining Value?
Polkadot Sharpe Ratio. Source: Messari

Furthermore, the price indicators fail to signal a substantial rally. The Relative Strength Index (RSI) attempted to surpass the critical threshold at 50.0, indicating a potential shift in momentum, but regrettably retreated back into bearish territory.

Read More: What Is Polkadot (DOT)?

The RSI is a momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions. RSI values above 70 typically indicate overbought conditions, while values below 30 suggest oversold conditions.

Will Polkadot (DOT) Price Drop to  Amid Declining Value?
Polkadot RSI. Source: TradingView

Although Polkadot’s price is far from being oversold, the failure to return above 50.0 is further a hint that, in the future, there will be a price decline. 

DOT Price Prediction: More Downside Expected?

Polkadot’s price, trading at $6.9 at the time of writing, is struggling to maintain $7 as a support floor. Stuck within a descending channel, the altcoin shows relatively stronger resistance. 

However, considering the aforementioned cues, DOT will likely fall through and hit the channel’s lower trend line. This line is marked at $5, and reaching the same would mark the lowest point for Polkadot in the last five months.

Will Polkadot (DOT) Price Drop to  Amid Declining Value?
DOT/USDT 12-hour chart. Source: TradingView

Read More: Polkadot (DOT) Price Prediction 2024/2025/2030

However, if the $7 support floor remains unbroken, Polkadot’s price could break down the channel. This would invalidate the bearish thesis. Consequently, it could set the altcoin up for additional gains to test $8 and $9 as resistance.

Top crypto projects in the US | April 2024

This article is sourced from the internet: Will Polkadot (DOT) Price Drop to $5 Amid Declining Value?

Related: Here Is Why the PEPE Correction Is Not Over Yet

In Brief Whales stopped accumulating PEPE in the last week, indicating a lack of interest from big buyers. SAR changed from bullish to bearish and it’s currently in a decreasing trajectory, which could lead to an almost 40% correction soon. EMA Lines are forming a death cross, which could trigger a strong downtrend in the next few days. The PEPE price is poised for a notable decline, with whales halting their accumulation last week, reflecting a drop in investor interest. The shift of the SAR indicator from bullish to bearish, alongside a forecasted possible 40% correction, further shows the bearish outlook. Additionally, the emergence of a death cross in the EMA lines suggests a strong downtrend could soon take hold. These technical indicators collectively signal a rough period ahead for…

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...