Polkadot price has been struggling over the past three weeks and the current crypto market bear run as not made things easy. At the time of writing, DOT was marginally up, gaining 0.15% in 24 hours to trade at $38.35. At that price, Polkadot is about 29% below its all-time high set three weeks ago. So far, the much-hyped parachains auctions have failed to create the momentum to push the price higher.
Polkadot fundamentals to support growth
In the run-up to the auctions, DOT rose significantly, en route to the ATH. However, the momentum ran out of steam soon after the first auction. DOT/USD is currently 13% below its price thirty days ago and has lost about 18% over the past two weeks. This signals that the market has been progressively bearish.
The parachain auctions are key to the long-term growth of Polkadot. The first auction was a success, and with Acala raising about $32 million in crowdloan. The second auction is underway, with Moonbeam leading the second one. Going by the outcome of the initial auctions, Polkadot is likely to grow substantially as more projects seek space on the ecosystem.
Technical analysis for Polkadot price
The buying momentum has weakened, and is likely to send Polkadot price further down. The Relative Strength Index (RSI) is currently at 39. In addition, the 10-EMA has crossed below the 20-EMA, strengthening the bearish sentiment.
If the buying momentum weakens, the share price is likely to slide down to the first support at $36.41. The second support is likely to be at $35, which will be important to pushing the price towards the $40 mark. However, if the momentum strengthens, the bulls are likely to target the first resistance at $40. Beyond that point, DOT/USD is likely to encounter the second resistance at $42.08.
