Bitcoin‘s price volatility has caused altcoins to struggle, leading them to sink even deeper. While Bitcoin moves in the opposite direction, altcoins fail to keep up. This prolonged trend has caused many cryptocurrencies to drop below the levels seen in November 2022.
The third quarter of 2023 witnessed yearly lows and even all-time lows for many altcoins due to decreased demand caused by Bitcoin’s price movements and reduced risk appetite. Today, many cryptocurrencies are trading below their prices during the days when BTC was below $20,000.
Polkadot’s (DOT) price can be considered among the victims of extreme selling. While its price dropped to $3.90, the lowest level of 2023, it struggled to maintain its position around the $4 mark. However, it seems that the bulls are currently lacking strength. The price frequently falls below critical support levels and then recovers.
Sellers managed to push the price of DOT below the January 2023 levels and the weekly support range of $4.22 to $4.58. In the second half of September, the red zone turned into resistance, making it easier for bears to reach deeper lows.
Readings on the daily chart indicated a continuation of the downtrend. While the RSI remained in a low range, the CMF favored sellers. These data, which show a lack of significant capital inflows, confirm the dominant position of sellers.
In conclusion, the price of DOT Coin could drop even further. Technical analysis does not predict the future, but it allows for future predictions by identifying patterns from the past. According to technical indicators, with increasing short positions below $4, we could see a move towards $3.9 and $3.6.
On the other hand, if the price closes above the weekly resistance zone (between $4.22 and $4.58), DOT may have a good chance of rising. Another important factor during this process is the performance of BTC. The leading cryptocurrency appears to be targeting $24,800 and $23,500 in case of closing below $26,500, which could have a multiplier effect on altcoin losses.