Polkadot Price is in Consolidation Mode: What Next?

Polkadot price has been nether aggravated unit for the past fewer days amid the caller bearish sentiment successful the crypto market. At the clip of writing, DOT was hardly unchanged, trading astatine $5.351. The altcoin has dipped much than 25% for the past period but remains 24.23% higher successful the twelvemonth to date. The asset’s full marketplace headdress has slipped implicit the past time to $6.343 billion, ranking it the 13^th largest cryptocurrency.

Polkadot terms has been consolidating for the past fewer days amid the caller sell-off successful the crypto market. Statistics by Coinmarketcap amusement that the planetary crypto marketplace headdress has dropped 1.29% implicit the past time to $1.13 trillion, portion the full crypto marketplace measurement decreased by astir 7%.

The biggest cryptocurrencies, Bitcoin and Ethereum, person been successful a freefall for the past fewer days, falling to $26,880 and $1,807, respectively. Most altcoins, including BNB, Cardano, Solana, Shiba Inu, and Avalanche, person plunged seeing that astir altcoins determination successful tandem with the show of heavyweights Bitcoin and Ethereum.

Looking up astatine the planetary marketplace mayhem with the US indebtedness ceiling statement and the US banking crisis, investors expect much downside successful the crypto market. The US dollar has continued increasing stronger, hovering astir a six-month precocious against the Yen, arsenic optimism astir the US indebtedness ceiling talks successful Washington raised expectations of higher-for-longer involvement rates.

Two Fed policymakers, including Dallas Federal Reserve President Lorie Logan, said connected Thursday that the US ostentation does not look to beryllium cooling astatine the expected complaint to let the Fed to intermission its involvement complaint hike campaign. Traders are pricing successful a 20% accidental the Fed volition hike involvement rates successful its June meeting.

Additionally, the European Central Bank (ECB) besides said that it remains committed to achieving its 2% goal, hence volition proceed raising its involvement rates until the guidance is met. An situation of hiked involvement rates is mostly bearish for hazard assets specified arsenic stocks and cryptocurrencies.

Polkadot terms has been consolidating successful caller trading sessions, trading betwixt the choky scope of $5.10 and $5.50. The DOT terms has remained beneath the 50-day and 200-day exponential moving averages, arsenic good arsenic the 50-day and 100-day elemental moving averages. Its Relative Strength Index (RSI) is beneath the neutral zone, exhibiting a bearish outlook.

Therefore, I americium alternatively neutral connected the plus with a bearish inclination. I expect the Polkadot terms to proceed consolidating successful the contiguous word arsenic technicals acceptable the pace. A determination beneath the important enactment level astatine $5.00 volition springiness bears a accidental to retest the adjacent enactment astatine $4.560. On the flip side, we cannot regularisation retired a bullish breakout past the 50-day EMA astatine 5.799.