Polkadot Road To Recovery – Will $4 Mark The Turning Point?
October 17 2023 - 12:00PM
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Polkadot (DOT) has been grappling with a descending resistance
trendline, experiencing a relentless decline since February. In the
month of October, the digital asset suffered a 10% drop, plummeting
from $4.3 to $3.6. Market analysts are warning of the
potential for further losses should the prevailing bearish pressure
persist. However, a slight glimmer of hope emerged as DOT attempted
a reversal at $3.6, hinting at the possibility of overcoming the
overhead resistance barrier. Related Reading: XRP On The Cusp Of
Redemption? Unveiling Data-Backed Insights At present, the DOT
price according to CoinGecko stands at $3.74, depicting a marginal
0.3% decline over the last 24 hours and a 2.8% dip over the span of
seven days. DOT’s Struggle For Recovery The absence of
horizontal support below the current price underscores the
significance of Fib retracement levels in forecasting potential
bottoming areas. Notably, a Fibonacci retracement tool was
utilized, encompassing the lower high of $4.8 on August 29 and the
recent dip of $3.6 on October 12. This analysis highlighted that
the path to recovery for DOT faces significant obstacles at the
23.6% Fib ($3.9) and the 38.2% Fib ($4). Complicating matters
further, the $4 level, serving as the second resistance target,
coincides with a daily bearish order block (OB). This confluence
suggests that crossing the $3.9 threshold could prove challenging
for bullish momentum. Polkadot Developers Stand Strong Despite the
persistent price downturn, the developers within the Polkadot
ecosystem remain resolute and undeterred. This unwavering
commitment is evident from the substantial Polkadot active
developers, which are currently hovering close to an all-time high.
This figure notably exceeds the levels recorded in 2021 when the
altcoin’s price reached its peak. Total crypto market cap is
currently at $1.06 trillion. Chart: TradingView.com In a recent
announcement, Parity Technologies, a significant player in
blockchain infrastructure, revealed its strategic shift towards
decentralization within the Polkadot (DOT) ecosystem. The
forthcoming organizational changes are anticipated to mark a new
chapter for the company in the months to come. Polkadot’s
Cutting-Edge Technology Advancement Amidst circulating rumors,
Parity Technologies promptly dispelled speculations about a massive
layoff of approximately 300 employees during a recent off-site
gathering in Mallorca. The company emphasized that any adjustments
to the workforce will be gradual and in alignment with its
progressive decentralized strategy. Related Reading: Shiba Inu
Shatters Resistance: A Sign Of A Bigger Reversal? Emphasizing their
dedication, Parity underscored their commitment to driving the
advancement of Polkadot’s cutting-edge technology. Their key focus
remains on enhancing the developer experience and fostering a
resilient developer community within the Polkadot ecosystem,
ensuring its sustained growth and innovation. (This site’s content
should not be construed as investment advice. Investing involves
risk. When you invest, your capital is subject to risk). Featured
image from Mudrex
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