Polkadot started this week on a positive note and added over 4% gains in the last 24 hours. While some top altcoins surged to a new monthly high, the price is yet to cross over a key level to mark a new monthly high.
In the latest recovery, DOT has managed to post gains but it appears not enough to fuel a big rally at the moment. However, it may see a steady push in the coming days.
A slow build-up could come into play if a small amount of volume is injected into the market just like what the market is currently experiencing on a weekly. The price is still trading under a two-month resistance level of $6.6.
Scaling through that resistance level could facilitate a notable surge in volatility if the demand level rises. Failing to flip it could result in another decline in the coming week.
Having said that, the key part of this setup is that Bitcoin must stay bullish to sustain the current momentum across major altcoins. If such a scenario fails to occur, a drop in BTC price may cause a double-digit loss in DOT’s price.
The $6.1 level serves as a weekly low for the market. Should the price sink below that level, DOT would need to dip below last month’s support to validate a strong bearish move. With the current setups, the trend is in favour of the bulls.
DOT’s Key Levels To Watch
A clear cross over the $6.6 and, most importantly, the $7 resistance level could activate a quick buy to $7.4 and $7.89.
There’s no room for drops at the moment. But if the current weekly low cracks, there’s still hope for recovery at $5.76. A drop from that level could bring the price to a low of $5.18, marked in the past month.
Key Resistance Levels: $6.6, $7, $7.4
Key Support Levels: $6.1, $5.76, $5.18
- Spot Price: $6.4
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.