Polkadot (DOT) ended the month of July on a high note only to set the tone differently for August. DOT rose from £6.73 to £7.39 on the last day of July, making good returns for its short-term investors.
Since August 1, DOT has started to descend, and it has lost almost 9.64% of its value of July 31. DOT’s price at the time of writing was £6.43.
The altcoin had lost its support at £7.8 and £6.69, but according to the charts, it had been holding onto its support at £6.57. However, it was unable to maintain control of the zone after being overpowered by selling pressure.
This could mean a blow to the dreams of DOT traders who sought to go long.
For the record, it did not completely collapse after losing a crucial support zone in July.
As the MACD and the RSI displayed their respective positions, the bearish status of DOT was further established.
The RSI was already approaching the oversold level, as seen on the chart. It had, however, remained at a favourable level for DOT sellers.
It had dropped below the midpoint at 41.95 as of the time of writing. The sellers’ strength drowned the buyers’ strength resulting in MACD confirming the bearish sentiment.
Bullish signs might have been anticipated by some traders, but DOT had other ideas. This was due to the fact that selling pressure kept escalating as DOT showed lower highs and flatter lows. The falling triangle in the chart suggests that the current bearish momentum is really strong.
According to Santiment data, DOT may remain favourable for shorts. Over the last 24 hours, trading volume had decreased by 35.94%. £0.83 billion as of August 1, it was down to £547 million at press time.
In the same vein, traders’ intentions to go long are not supported by a declining market cap. DOT’s
market capitalisation dropped considerably from £66.7 billion to £7.31 billion.
Interestingly, the MACD and RSI projections were not followed by the EMA. The ongoing price slide may end soon because the 20 EMA was well above the 50 EMA.