DOT Price Analysis: Polkadot Price Suffers Bearish Pressure Despite Continued Network Developments

The latest in the blockchain upgrade is the asynchronous backing which is aimed at improving scalability and parachain interoperability.

Polkadot (CRYPTO: DOT) price dropped on Wednesday evening as the bears continued to apply pressure despite ongoing network developments.

The latest in the blockchain upgrade is the asynchronous backing which is aimed at improving scalability and parachain interoperability.

DOT price dropped 2.8% in the last 24 hours to trade around $5.68 during U.S. business hours.

What Happened: On Wednesday, the DOT bears applied pressure as the coin dropped to a low of $5.63 and a high of $5.82. DOT price is down 18.2% in the last 30 days.

Investors are keeping a close eye on Polkadot on-chain metrics as the coin continues to trade sideways.

According to data from Polkadot Subscan, the daily holder count is at an all-time high of 1.3 million, with 321 new additions over the last 24 hours.

Daily active users surged by 19.21% and daily on-chain volume hit an all-time high.

Despite the drop in price, these metrics are signaling that the network is active and well.

According to CoinGecko, the 24-hour volume for DOT increased by 23%.

Zooming out, there is a steady decline in trading volume since July 5, when the asset hit its yearly low.

This suggests there is weak buying pressure and a lack of bullish interest.

Coinalyze data shows open interest is low, increasing only 0.12% in the last 24 hours.

The Long/Short ratio is 2.83, with 73.86% of traders across the exchange betting Long on the asset.

This indicates the market may be fearful in the short term, but optimistic in the long term.

DOT Price Action: Polkadot price chart shows a downward trend with the value consistently below the 50-day and 200-day EMAs.

Candlestick analysis reveals a potential for the bearish momentum to continue but a major support at the recent psychological low of $5 may hold the price up.

Polkadot price is in a consolidation zone which has lasted about 1.5 months.

A break below the $5 support level may result in further downside movement to $4.91 (yearly low).

Conversely, if bulls prevail, DOT price may encounter major resistance around $6.17 (50-day EMA) and a relatively small barrier around $6.77 (200-day EMA).

Beyond this, $7.00 presents a strong resistance level.

The Relative Strength Index (RSI) is at 40.90, indicating bearish momentum but approaching oversold territory.

The Chaikin Money Flow (CMF) is at 0.04, showing neutral to slightly positive money flow.

This suggests capital inflow to Polkadot is minimal but still present.

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