Polkadot price: A look at the week that was and is to come

Polkadot price was subject to low volatility for the second session in a row on Saturday. While investors are still optimistic about the recovery of the digital assets, a hawkish Fed and recession concerns continue to weigh on the altcoin.

In the coming week, the focus will be on the US consumer price numbers and the industrial production data. The numbers will avail further cues on just how resilient the US economy is to inflationary pressures and high interest rates.  


Concerns over a probable recession have continued to weigh on the crypto industry even as the bulls remain in control. Recent data shows that while inflation appear to have peaked, a strong US labor market will prompt the Fed to continue with its interest rate hikes.

On Thursday, the 2-year Treasury yields rose above the 10-year yields by the broadest margin since the 1980s. Notably, the deep curve inversion has heightened concerns over the US economy’s ability to withstand further interest rate hikes by the central bank. The subsequent recession woes has had an impact on cryptocurrencies; which had recorded steady recovery in the initial weeks of 2023.  

In the coming week, US inflation and industrial production numbers may yield some relief for polkadot price and the broader crypto sector. Even so, I still expect the altcoin to be subject to curbed gains as the market fully prices in a hawkish Fed.

Polkadot price outlook

DOT/USD recorded rather subtle movements on Saturday after dropping to a one-week low on Thursday. Interestingly, the altcoin is set to record its first weekly loss since the beginning of 2023.

As shown on its daily chart, polkadot price has continued to trade above the 50-day EMA while hovering around the 25-day EMA. Besides, its RSI (relative strength index) is at a neutral level of 49. A look at these technical indicators, coupled with the fundamentals, I expect the crypto to remain on a bullish trend while experiencing pressure in the form of recession concerns and low risk appetite.

The ascending channel highlighted in black in the chart below summarizes this cautiously bullish thesis. While polkadot price is set to remain on its uptrend in the ensuing sessions, the bulls will likely not gather enough momentum to retest November’s high at 7.42.

In terms of the crucial levels in the short term, polkadot price may continue to trade within the ascending channel. In particular, the range between the 50-day EMA at 5.95 and the resistance level of 6.58 will be worth watching.

Further pullback past the range’s lower border will likely place the support zone at 5.57. On the upside, I expect the probable gains to be curbed at the psychological zone of 7.00.

polkadot price
polkadot price

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