Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

DOT/USD: Polkadot Suddenly Slumps to Late August Juncture

By Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

DOT/USD fell in a dramatic fashion yesterday as it was hit by a wave of nervous sentiment being expressed in the broad cryptocurrency market.

DOT/USD fell from a high which was within sight of the 36.0000 mark yesterday, to a sudden lightning quick low of nearly 22.0000. As of this morning Polkadot is trading near the 26.0000 ratio as it hovers near important support levels developed the end of August. Yesterday’s high of nearly 35.7000 touched marks not seen since the 19th of May, but unfortunately the mid-term apex didn’t last long. A sudden and brutal selling wave hit the broad cryptocurrency market and DOGE/USD suffered along with many of its major counterparts.

While many analysts are blaming what is being perceived as a complicated ‘rollout’ of Bitcoin in the nation of El Salvador yesterday as reason for the spikes lower within the digital asset world, the real reasons are not as simple as this mere statement. DOT/USD and a host of other important cryptocurrencies have been testing mid-term highs, and yesterday’s fierce selling action may have been a case of cashing in profits before they evaporate into thin air. Certainly nervous sentiment played a role in the sudden downturn, but when selling increased it happened with a ferocious and swift movement.

While DOT/USD was able to reverse off of yesterday’s low, the cryptocurrency remains within a critical juncture which will test the perceptions of speculators. If the 26.0000 level begins to be challenged lower this could indicate that late August’s value range is going to see a legitimate test. Between the 16th and 31st of August, DOT/USD demonstrated a price band between 22.7500 and 29.3000.

It should be remembered on the 20th of July DOT/USD was trading near the 10.0000 mark. Yesterday’s high is a significant achievement, and shows that plenty of optimism and speculative interest remains in Polkadot. The sudden downturn wasn’t a selloff caused by a change of heart regarding DOT/USD, it was a reaction to the broad market and Polkadot simply correlated to the move.

The bullish trend of DOT/USD actually continues to look rather tempting. However traders who are cautious may want to see stability increase within the market before attempting buying positions which try to take advantage of potentially oversold conditions in DOT/USD. Support levels need to be monitored. If the 26.0000 to 25.5000 junctures prove durable in the short term, this could set the table for a bullish reaction higher.

Polkadot Short Term Outlook:

Current Resistance: 27.1400

Current Support: 26.0100

High Target: 29.4000

Low Target: 24.3500

PolkaDot

Robert Petrucci
About Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.
 

Most Visited Forex Broker Reviews