Polkadot’s DOT token has largely missed out on the robust altcoin rally over the past week, calling into question its status as a leading smart contract platform.
While altcoins like Solana’s SOL, Cardano’s ADA, Dogecoin, Shiba Inu, and Ethereum have posted double-digit percentage gains in the last 7 days, DOT has limped along with just a 6% increase.
This relatively anemic price action indicates fading momentum and investor interest in Polkadot at a time when the broader altcoin market is on fire. DOT has failed to recapture key resistance levels around $4.20, while longer term technicals remain in clear downtrends.
According to market analyst altFINS, the recent bounce off support at $3.60 initially showed promise. However, DOT quickly lost steam after briefly breaking above $4.20 resistance. While altFINS believes there are early signs of a potential trend reversal, price needs to firmly close above $4.20 before calling a sustainable uptrend.
Source: altFINS – Start using it today
At the same time, momentum indicators like the MACD and RSI show bullish momentum may have already peaked in the short term. This could limit additional near-term upside for DOT without a major infusion of trader interest.
With Polkadot failing to participate fully in the current altcoin frenzy, traders may want to look for greener pastures in leading altcoins actually exhibiting strong price performance. DOT could remain rangebound between support at $3.60 and resistance at $4.20 until catalysts emerge to accelerate its lagging price action.
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