After taking a short break on Tuesday, DOT faced a rejection at $4 and resumed drops. The bears appear set to mount pressure again as supply slowly increases. It looks weak following a 3% loss in the past hours.
DOT’s daily outlook remains weak following a roller-coaster reduction in the last three months. Bears have fully taken control in the short term.
The early month dump has not just caused panic and fear for the mid-term investors but has put DOT in a more bearish condition over the past few days, and from the look of things, it is not showing signs of slowing down yet. It just resumed selling after taking a day break.
The weekly $3.65 low may pose a little threat as the bears slowly mount pressure. A pull-off this low could dip the price to a new multi-year low. Such a dip will bring an end to the bull season and, at the same time, trigger a long-term bearish sentiment. Another pointer to watch for this bearish signal is the steady decline in the daily volume indicator.
We may see a short retracement if the bulls defend the weekly low well. But from the look of things, the bears will likely have the upper hand.
DOT’s Key Levels To Watch
Source: Tradingview
Losing the above weekly low in the latest drops, the $3.2 level would be the next line of support to keep in mind. While it marks a five-year low, $3 is the close level in case of more dip.
The $4 level has prevented the recent bulls’ pressure. If they overcome it, we may see a retracement move to the $4.7 and $5.3 resistance levels. Above it lies the $6 level.
Key Resistance Levels: $4.7, $5.3, $6
Key Support Levels: $3.65, $3.2, $3
- Spot Price: $3.95
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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