After reaching the price point of $8, which also happens to be a monthly pivot, it seems that the luck of the bulls has run out. What made things even more interesting for DOT was the fact that this level also coincided with the 55 SMA (daily) as well. So in a sense, the monthly pivot and the 55 SMA (daily) acted as a resistance for the bulls.
Experts believe that higher inflation and a rapid increase in the US interest rates will put further pressure on the Polkadot (DOT) prices.
It's been the 5th time that Polkadot has failed to break above the 55 SMA (daily) and the monthly pivot line. For any meaningful bull run in DOT, these two hurdles are very important to cross. If this happens, the next target for the DOT bulls would be around the $9 price range.
Right now, that window of opportunity is very close as central banks around the world are gearing up for further rate hikes. On top of that, new inflation numbers around the world will also put more pressure on the DOT and other coins.
On the intraday level, there is a chance that DOT might close above the 55 SM (daily) but what's more important is a daily close above that level. For that, you will have to check the daily chart of DOT by adding a 55 SMA. On the shorter timeframes, any break above that level should not be tested unless verified on the daily chart first.
And just a marginally higher close above the 55-Day SMA would not be enough as well. For a more convincing bullish trend, the DOT would have to spend a couple of days above that level with sufficient bullish momentum.
Currently, the main focus of the crypto community is on Ethereum since it is nearing a major upgrade. Other than that, the BTC is also making some interesting technical moves that can overshadow the DOT.