Polkadot’s DOT formed a support level around the $6.40 mark after bottoming in June. The altcoin retested this foothold several times within the past few weeks. Another retest appeared this week, but the support presented weakness signals this time.
July 12 sessions saw DOT dipping towards the $6.26 lows after breaching a support line. That emerged as bearish tendencies dominated since this week started.
The outcome shows the absence of impressive buying momentum due to surged fear of another possible crash. Nevertheless, DOT regained some upticks after hitting a new $6.22 low for 2022.
Still in the Wood?
DOT breaching the June support level could signal further possible declines regardless of the slight upswing within the past day. That’s because support weakness shows investor unwillingness to purchase at prevailing price zones, translating to lower demand.
Polkadot fans may be waiting for DOT to dip inside the oversold territory, a move that would mean inevitable slumps.
Furthermore, DOT’s price movements heavily rely on the mood of investors. The Binance funding rate index recorded a substantial interest decline within the derivatives markets from July 10 to 12.
Meanwhile, Polkadot’s social dominance metric noted a brief uptick but its July 8 increase could have signaled the beginning of the decline.
Whales saw these signals and therefore sold some assets. The whale supply index declined briefly from July 10’s 43.67% to 4-week lows on June 12.
Nevertheless, the metric shows whales accumulated the alt and control 43.90% of Polkadot’s circulating supply. Moreover, it means large wallet investors hold more tokens that before this week’s bearishness.
DOT in Danger Still?
Whale accumulation explains why the recent drop didn’t push well beneath the support. It’s an impressive signal that DOT could rebound and regain higher price zones, though that isn’t an assurance. Moreover, the current market uncertainty and lower development activity might repel investors.
Also, bears seemed to have confirmed their regime in the crypto markets, triggering downsides after each upward move. The broad crypto market cap remains well beneath the $1T level, hovering around $892.72 billion during this publication.
Stay tuned for upcoming crypto news.