Polkadot’s DOT Remains Under Strong Bearish Influence: Analysis

Polkadot’s DOT remains under strogn bearish influence and faces a downtrend on the charts as the broader market strength remained low so let’s have a closer look in today’s altcoin news.

Over the past 24 hours, Polkadot’s DOT remains under bearish influence and lost about 8% of its market value which invalidated the weekly gains it made. The technical outlook for the coin indicated a bearish price action. In accordance with the same, it is likely that the coin was not able to hold itself above the $6 support level, and the coin witnessed some stiff resistance at the $7.20 mark. Only if the coin manages to trade near $7.20, the bulls will be back. At the front of the development, Poladkot introduced a new on-chain governance model, and the founder Gavin wood announced the governance model as a part of the Polkadot Decoded conference.

The main goal of the governance model is to ramp up the number of decisions the governance structure is able to make and the newest developments will have a positive effect on the price of the asset. If DOT registered a price correction and moves past $7.20, the coin could touch a higher resistance point. The volume of DOT traded dropped dramatically and indicated bearishness on the chart. In accordance with the selling pressure, the coin flashed some selling signals on the chart and the Awesome Oscillator formed a red signal bar which is tied to the selling signal for the coin. The Bollinger Bands show the price volatility on the marekt and they were narrowed which means they are going to be some explosive price actions in the next trading sessions.

As recently reported, The cross-chain interoperability protocol Polkadot announced the launch of the messaging system dubbed XCM which will allow communication and transfer the digital assets between the parachains. The project needs the messages sent across the XCM channels to be secured at the same level as the Relay Chain, unlike the other bridging systems which create a weak link problem. Polkadot’s Relay chain is the central hub used by all chains in the Ecosystem and can support hundreds of parachains with projects being built on it like Acala and Centrifuge.