Polkadot price was on consolidation mode for the second session in a row on Monday. This is after dropping to its lowest level since 20th January on Friday. In the ensuing sessions, crypto traders will be seeking further cues in the form of Jerome Powell’s speech and US jobs data. Besides, the sector continues to digest Silvergate’s fallout.
Fundamentals
In the new week, crypto traders are still digesting recent news over the fallout of Silvergate Capital Corp. The US bank is crypto friendly and a key payments platform for the sector. Notably, concerns over its viability have revived contagion woes founded on the bankruptcy of one of its clients – FTX.
Besides, polkadot price may remain range-bound ahead of Jerome Powell’s speech on Wednesday and US nonfarm payroll data on Friday. The Labor Department reported that in January, over 500,00 jobs were added to the country’s economy. Besides, unemployment rate dropped to a level last seen in 1969. If the awaited events point to a hawkish Fed, cryptocurrencies’ bulls may experience additional pressure.
Polkadot price forecast
About two weeks ago, polkadot price had risen by 84% year to date. However, the recent decline have seen it shed close to 25% of those gains. Granted, it has held steady above the support level of 5.50 as has been the case since mid January.
As at the time of writing, polkadot price was down by 0.4% at 5.95. A look at its daily chart shows that the altcoin is still trading below the 25 and 50-day exponential moving averages.
In the ensuing sessions, I expect DOT/USD to be subject to curbed gains ahead of the US jobs data and Jerome Powell’s testimony later in the week. In particular, I forecast that it will remain within the range of between the support level of 5.79 and the resistance level along the 50-day EMA at 6.33.
Even with the probable rebounding past the aforementioned level, it will likely remain below the 25-day EMA at 6.45. On the lower side, further decline may have the bears retest the support at 5.60.
