The Polkadot price has been unable to hold on to the relief rally gains. DOT remains in a tight range as bruised traders digest last week’s sell-off.
Cryptocurrencies share a high correlation. In general, Bitcoin is the market leader, and when it runs higher, it drags altcoins with it. Last week we saw that the reverse is also true.
Although, altcoins have a higher beta, which means they will outperform Bitcoin on the way up and underperform it on the way down.
This has been evident in the Polkadot price performance this year. It had gained +500% from the start of the year vs. Bitcoins’ +140% increase.
In the recent crash, Bitcoin lost -$53% vs. DOT’s -70% decline. Therefore, we can assume that whichever path Bitcoin chooses next will profoundly affect the Polkadot price.
Polkadot Price Action
Dot has followed the same recent pattern as much of its peers. During Wednesday’s sell-off, the price traded down to $17.2200. An 80% rally to $31.07 followed, which then faded back to $21.0000.
Despite further attempts to break through $31.00, the Polkadot price is currently trading at $22.000.
An ascending trendline, in place from the May 19th low, supports the price at $21.4000. Each time DOT has touched the trend line; it has managed to bounce. However, each time met resistance around $24.6000.
If the Polkadot price can clear this resistance level, it may well be on track to make another attempt at $31.0000.
Nonetheless, a failure to hold the trend support at $21.4000 would signal a visit to Wednesday’s $17.2200 low could follow.
DOT 30-Minute Chart
Follow Elliott on Twitter.