At the time of writing this article, the price of BTC was hitting its daily low, dropping to $25,333 just a few minutes ago. Altcoins are also moving. Just as cryptocurrencies in the bull market are running towards ATH levels, altcoins have started setting new ATL levels in the past month. If the ongoing Bitcoin decline deepens, it could trigger larger sell-offs for most cryptos.
Polkadot, unsurprisingly, ended August in the red. The price, which decreased by 16% on a monthly basis, continues to be affected by the Bitcoin decline. The king cryptocurrency is struggling to hold even $26,000. This situation could have more serious consequences for altcoins. Especially considering that Saturday mornings sometimes lead to terrible losses, this is quite risky.
Due to the decrease in volume over the weekend, larger sell-offs can be observed in the crypto market. As for the price of DOT Coin, the mid-August price drop was temporarily halted at the short-term support of $4.32. This support has remained stable since June and coincided with the weekly uptrend order block of $4.22 – $4.59. From a perspective, the weekly uptrend order block prevented the June price drop and a similar trend could support the bulls. Cumulative Volume Delta (CVD) started to decline from August 30th, but remained sideways at press time. This indicates that sellers’ dominance continues.
Open Interest rates increased from August 31st and sellers’ short positions are strong.
On the weekly chart, DOT Coin still does not show signs of recovery. The $4.2 region has been working as support for weeks. If the critical level is lost, selling pressure could continue down to $3.68. Considering that the price last reached these levels in August 2020, we can better understand the intensity of the bear market we are currently in. While altcoins are setting new ATH levels in the bull market, they are now descending to ATL regions.
The fact that prices have dropped so much can now raise hopes for a recovery. Moreover, a return to normalcy is expected in the macro arena within a few months. For a possible recovery, closing above $5.15 is critical, and there is a level of $6.9 above it. In the scenario where a sharp turnaround starts from the bottom, the price will need to exceed $22. The ATH level of DOT Coin on the Binance exchange was $55.3.