- A significant breakout led to a peak, followed by a correction, with support identified at $6.861.
- The RSI hovered around 50, indicating a balance between buying and selling forces.
Polkadot [DOT] has shown dynamic price movements, attracting trader interest with key resistance, support levels, and on-chain metrics.
DOT has exhibited notable price movements, with key resistance levels at $8.181, $9.573, and $10.490.
Source: TradingView
A significant breakout led to a peak, followed by a correction, with support identified at $6.861.
Volume spikes during the uptrend indicated strong buying interest, while consolidation near $7.866 suggested a potential recovery.
Assessing Polkadot’s momentum using RSI
Traditionally, an RSI above 70 indicates overbought conditions, suggesting a potential price reversal or pullback, while an RSI below 30 indicates oversold conditions, implying a possible price increase.
Source: CoinGlass
In Polkadot’s recent chart, the RSI approached overbought territory during the uptrend, signaling strong bullish momentum. As the price peaked and corrected, the RSI declined towards neutral levels, reflecting the easing of buying pressure.
At the time of writing, the RSI hovered around 50, indicating a balance between buying and selling forces. If the RSI moves above 70 again, it could suggest renewed bullish momentum, potentially leading to a retest of resistance levels.
Conversely, a drop below 30 might indicate increased selling pressure and a possible decline towards support levels.
DOT’s MVRV Ratio: Is it overvalued or undervalued?
An MVRV Ratio above one indicated that the market value exceeds the realized value, suggesting potential overvaluation, while a ratio below one implies undervaluation.
Source: TradingView
For Polkadot, the MVRV ratio rose above 1 during the recent uptrend, indicating that the market value was higher than the realized value, which is typical in bullish phases.
As the price corrected, the MVRV ratio declined towards 1, reflecting a move towards a more neutral valuation. Currently, the MVRV ratio is slightly above 1, suggesting that Polkadot is modestly overvalued.
Read Polkadot [DOT] Price Prediction 2024-2025
A significant increase in the MVRV ratio could indicate heightened bullish sentiment and potential price appreciation, while a decline below 1 might signal bearish trends and further price corrections.
Polkadot’s recent price movements have been characterized by significant fluctuations, with key resistance and support levels playing crucial roles.
The RSI and MVRV ratios provide valuable insights into the asset’s momentum and valuation, respectively.
