Polkadot is one of the latest cryptocurrencies on the news, following news of their recent ties with the Tether network, providing stable and easy in-and-out access for users of the Polkadot network.
Price Action On Polkadot
Over the past few weeks, DOT has broken down below the $7 mark and is currently retesting the $6.4 resistance. So far from a medium-term perspective, it has made a new lower low, looking likely for a downtrend continuation to occur. The MACD line is currently testing the RSI signal line, making it hard to guess where the market may be headed
However, the RSI on the 4-hour timeframe shows a value of 52, indicating neutral conditions from a medium-term perspective, and a likelihood for the market to move in either direction.
Tether, Recent News, And Effect On Polkadot Price Action
On the 23rd of September, Tether announced its launch on the Polkadot network, allowing the new option of minting some Tether on the Polkadot network.
Polkadot has been under the microscope in terms of growth and evolution, according to the CTO of Tether, Paolo Ardoino. Ardoino also believes that this new development of adding Tether to the Polkadot network is a great way of achieving that.
Following Tether’s announcement, there was noticeable price movement on the charts of DOT, the native cryptocurrency of the Polkadot network.
The price action of DOT was unable to maintain this bullish momentum. After hitting a high of $6.63, prices fell right back to the $6.19 support.
Where To Next?
The price action on the daily timeframe shows that DOT has been in a bullish wedge since May 2022, and is likely to break out and trend massively upwards anytime soon.
Conversely, while the daily timeframe shows likely bullish momentum on Polkadot’s price soon, the indicators do not.
The daily RSI has indeed fallen below the 50 mark and is now at a value of 39.98. While some would argue that this is a bullish signal as well, the rest of the crypto market isn’t so sure.
So far, there has been no bullish divergence between the signal line and the MACD line, suggesting that it might be risky to blindly enter a market long.
It is important to note that while a breakout seems likely, the price of DOT is currently testing resistance around the $6.4 level, and could still trade lower. This makes trading risky until we see a market confirmation.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research).