Polkadot price was in the red for the third consecutive day on Wednesday as all eyes shifted to the US Federal Reserve ahead of its June meeting. At the time of writing, the cryptocurrency was down by 2.80% at $5.20. The altcoin is yet to recover from its losses in June, remaining 2% lower in the month to date. Even so, the digital asset’s price has remained nearly 21% higher in the year to date.
Polkadot price has been in a freefall since the start of the month, erasing some of the gains made in the last week of June. DOT’s recent performance has been moving in tandem with the global crypto market performance. The cryptocurrency market was down on Wednesday as investors anticipated the FOMC meeting minutes for June. Bitcoin, the largest cryptocurrency by market capitalization, slipped by more than 2% in the past day below the crucial $31,000 level.
The global crypto market cap has dropped by more than 2% over the past 24 hours to $1.19 trillion, with the total crypto market volume down by 6.55% over the same period. DOT’s market cap has also decreased by 5% over the last day to $6 billion, ranking it 12th after TRON. Despite the current pullback in the crypto market, investors seem to remain confident in the sector. The Crypto Fear and Greed Index shows an improvement to a Greed level of 63, hinting at a likelihood of a market correction.
The US Federal Reserve is expected to release the minutes of its June meeting later in the day, allowing investors to hunt for clues about the central bank’s monetary path ahead of its July meeting. The Fed paused its interest rate hike campaign in June but signaled its support for further rate hikes this year. Traders are pricing in an 88% chance that the Fed will hike its funds rate this month by a quarter basis point.
Polkadot Price Technical Analysis
The daily chart shows that the Polkadot price has been in a bearish trajectory for the past three days. The asset has managed to drop below the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has dropped below the signal line, indicating an increase in selling pressure.
As such, I expect the Polkadot price to continue falling in the immediate term as macroeconomic factors continue to weigh on the markets. If this happens, the next support level to watch will be $4.85. On the other hand, a move above the key resistance level at $5.55 will invalidate the bearish thesis.