Updated on January 9, 2023 12:51 PM
The broader look at the market reveals Polkadot bears are having a tough time getting hold of the immediate trend. The crypto market is going through the worst phase. In the last 3 weeks, Polkadot entered the high liquidity zone near the Point of Control (POC, red) in the $6.3 region. Certain triggers in the current market scenario could lead to a volatile movement. And that would be inflicted in Polkadot’s price in the coming days.
Since Polkadot peaked highs in April, the bearish pressure is inflicting pressure to pulldown the crypto. Due to this, the 22-month support for Polkadot pinched $6.1 in the last three months.
As per reports, Polkadot could face a major resistance in the range of $6.7-$6.8.
With the current market conditions going south, investors are awaiting the reversal of the current pattern. The $6.1 is the support range where investors can find a chance to identify future price drops. However, this situation would lead to late recovery prospects. And before the revival, sellers will be aiming to retest the baseline of $5.6.
Developed by Marc Chaikin, Chaikin Money Flow (CMF) is a technique of a volume-weighted average of accumulation and distribution over a specified period. The CMF is expected to be high and bullish for Polkadot. This will support a strong price action for the crypto and eventually display a bullish run. However, to confirm this narrative, the Relative Strength Index was yet to find a close above the midline.
Since August, Polkadot is consistently working to improve its funding rate and development activity. The founders and team behind made immense progress to ensure Polkadot doesn’t go below the support range. Despite all the progress Polkadot is making, the social dominance of the token is diminishing. As a result, the price of Polkadot is struggling to have a bull run.
The CMF has been a victim of the bullish market conditions due to which Polkadot bulls are striving to breach the down channel. If the price fell anywhere below the $6.1 level, it will confirm a downside for the crypto. Will Polkadot survive this market crash? Well, that’s something time will tell.