Bitcoin

Polkadot

Block

Reversal

Polkadot price is down 2% in the last 24 hours as the crypto market witnessed renewed selling momentum during U.S. trading hours Wednesday. Leading cryptocurrencies, Bitcoin and Ethereum, also saw 2-4% declines, dropping to $54,700 and $2,351, respectively. The overhead supply pressure hints that the prevailing correction has not yet bottomed, and sellers could drive an extended downfall. 
<h2 id="b-polkadot-price-signal-reversal-from-major-support-b">Polkadot Price Signal Reversal From Major Support</h2> 
The crypto market recorded a notable correction in the past two weeks amid recent recession fears and a notable sell-off in traditional markets. The selling pressure plunged most of the major cryptocurrencies, including Polkadot (DOT), into aggressive downfall. 
In the daily chart, Polkadot price fell from $6.47 to $3.6, registering a loss of 44.55%. The aforementioned support has been intact since October 2020, and the bottom was the last correction trend before the 233% rally. 
The long-tail rejection candle highlights sustained demand pressure at the $3.6 support level, boosting <a href="https://coingape.com/glossary/altcoins/">altcoin</a> by 26% to $4.5. Consequently, the Polkadot’s market cap surged to $6.68 billion. 
In addition, the <a href="https://coingape.com/glossary/rsi-relative-strength-index/">Relative strength index</a> (RSI) indicator, at 29%, indicates that this DOT coin trades in oversold regions. This discounted value would attract more traders and could drive a 16% rally to $5.3 to challenge the downsloping trendline. 
<img decoding="async" src="https://s3.tradingview.com/snapshots/7/75kWi5sU.png" alt="BINANCE:DOTUSDT Chart Image by sahilmahadik07"> 
The on-chain data from The Block indicates a notable recovery in network growth activity for Polkadot. The number of unique addresses on the Polkadot Relay Chain (7-day moving average) increased from 956 to 1,100 within a week, reflecting a growth of approximately 15%.&nbsp; 
<iframe loading="lazy" title="Number of New Addresses on the Polkadot Relay Chain (7DMA)" src="https://www.theblock.co/data/on-chain-metrics/polkadot/polkadot-new-addresses-7dma/embed" width="100%" height="420" frameborder="0"></iframe> 
Additionally, the number of active addresses on the Polkadot Relay Chain (7-day moving average) surged from 5,630 to 7,030, marking a rise of about 25%.&nbsp; 
<iframe loading="lazy" title="Number of Active Addresses on the Polkadot Relay Chain (7DMA)" src="https://www.theblock.co/data/on-chain-metrics/polkadot/number-of-active-addresses-on-the-polkadot-relay-chain-7dma/embed" width="100%" height="420" frameborder="0"></iframe> 
These increases indicate enhanced user engagement, growing network activity, and potentially greater adoption and utilization of the Polkadot ecosystem. 
On a contrary note, broader selling pressure in broader markets persists, which could bolster sellers’ rechallenge of the $3.6 bottom.&nbsp;A potential breakdown below will signal the continuation of the downtrend and may plunge <a href="https://coingape.com/price/polkadot/">Polkadot price</a> by 18% to hit $3 psychological support. 
The post <a href="https://coingape.com/markets/polkadot-price-multi-year-support-rebound/">Polkadot Price Hits Multi-Year Support in Oversold State; Rebound Imminent?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Polkadot Price Hits Multi-Year Support in Oversold State; Rebound Imminent?

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