polkadot (quotation DOT) is proving to be one of the biggest "loosers", suffering from the bearish mood that hit the broader cryptocurrency sector after Bitcoin (BTC) dipped below $ 32.000. At the time of writing, DOT / USD is trading around $ 13.
Swooping down
Over the past week, Polkadot has experienced side trading action in an environment of low volatility as investors remain wary of the high-risk digital currency space. The latest negative sentiment is the result of a new bout of US dollar strength on rising expectations for the Fed to raise interest rates and tighten its monetary policy sooner than expected.
In the past 24 hours, Polkadot has lost nearly 9% of its value and has dropped by over 34% in the past month. Despite recent gains from time to time due to chain guard auctions, the dominant theme remains bearish as traders become wary of digital assets in the wake of recent regulatory developments around the world.
On the fundamentals front, however, there are several promising developments that can support DOT in the near future, staying in line with our previous forecast. With parachain auctions already underway on Polkadot's Kusama Canary network, it's only a matter of time before they start on the DOT blockchain as well, ushering in a new wave of interoperability for ecosystem projects.
Moonriver, one of the projects that won a slot in Kusama's chain guard rods, successfully completed the first part of its launch process, producing its first blocks. Kusama recently completed its fourth round of auctions with a bid of 130.000 KSM, indicating significant interest in the concept. Once the chain guards have made their way to Polkadot, the value of the DOT is likely to rise higher in the coming months.
Key levels to keep an eye on
On the 4-hour chart of DOT / USD, the moving averages support a prevailing bearish trend in the market. However, the major technical indicators RSI and momentum show some interest among buyers as well.
The price of Polkadot is not only below the pivot point at $ 15, it has also fallen below the first support level at $ 14. It looks like it is ready to test the next support around the $ 13 level, and possibly move down to the key $ 10 level where it could find some more support.
On the other hand, if buying interest strengthens, a bullish mood can be confirmed once the price returns above the pivot point and tests the resistance at $ 17.
