Polkadot: Is the tempo right for DOT traders to go long

ambcrypto.com:

While Polkadot [DOT] ended July strongly, the start of August was on the opposite side. On the last day of the previous month, DOT increased from $8.2 and went as high as $9.11—driving good profits for its short-term investors. 

However, DOT has reversed to a downward trajectory since 1 August and has lost around 9.64% of its previous day’s value. At press time, DOT’s price was $7.83 as per CoinMarketCap.

From the charts, DOT had been holding on to its $8 support after losing it at $8.63 and $8.15. The coin, however, lost its grip on the zone after the selling pressure overwhelmed it.

The loss of this support could end the hopes of DOT traders who aimed to go long. 

Well, that may also not be the case, as DOT did not entirely fall off after losing a vital support zone in July.

Source: TradingView

The bearish state of DOT was further confirmed as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) revealed their respective positions.

According to the chart, the RSI was already heading towards the oversold level. However, it had maintained a good level in favor of DOT sellers.

At press time, it had gone lower than the midpoint at 41.95. Similarly, the MACD established the bearish DOT sentiment as the sellers’ strength indicator (orange) rose above the buyers’ (blue).

While some traders might have hoped for bullish signals, DOT had other plans. This was because the selling pressure kept increasing as DOT indicated more flatter lows and lower highs. In the chart, the descending triangle may prove that DOT’s current bearish momentum is incredibly high.

Based on Santiment data, the status of DOT may continue to be in favor of shorts. Trading volume had reduced 35.94% over the last 24 hours. As of 1