Polkadot in a short-term range, but long-term sellers remain strong

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Bitcoin [BTC] had some good news emerging from a fundamentals viewpoint. According to Messari, the energy consumption of Bitcoin increased by 2% in the past quarter compared to Q2 2022. Yet, the hash rate has increased by 6%. This could be attributed to stronger, more efficient mining hardware.

Here’s AMBCrypto’s Price Prediction for Polkadot [DOT] in 2022

The price of Polkadot [DOT] tested the lows from July at $6 in late September. In recent weeks, the price has only consolidated above those lows. A strong trend was not visible yet but the past month’s slow losses meant further downside could be imminent.

Source: DOT/USDT on TradingView

In July and early August, the price had a strong bullish outlook on the daily timeframe. It made a series of higher lows and higher highs, but this trend was broken in mid-August. The break in market structure then meant the longer-term bias assumed a bearish outlook.

The sellers forced yet another move lower in September as the price crashed through the $6.8 support to visit the $6 lows from July. Indeed, these lows have not been visited in more than a year preceding July.

Higher timeframe charts such as three-day or weekly show $6.3 and $5.6 to be significant levels of support for DOT as well. The Fibonacci extension levels (yellow) showed 23.6% and 61.8% to lie at $6.11 and $5. Therefore, a drop below $6.1 could end up going as deep as $5 on the price charts.

With the Relative Strength Index (RSI) below neutral 50 and an On-Balance Volume (OBV) in decline, a drop below $6 might be likely. Bearish momentum and selling intensity were evidenced