The past week has been painful for DOT as it took another downturn after witnessing a short recovery. It resumed drops and recorded a total loss of 13% in a week, although it is looking calm at the moment.
DOT’s performance has been poor over the past months due to a bearish crossover into the new year. Luckily, it found a solid ground in March and recovered, but the bears countered the move in the late month and pulled the price lower.
That led to a bearish start this month and the price declined, although the current low is still standing well. It recently found a layby and currently sits above $3.8. This price level may hold as support if the bulls defend well. Otherwise, we may see an extension in the existing bearish trend.
Looking at the overall market structure on the micro-level, it appears to have reached an extremely oversold condition after losing over half of its value in over 90 days. As we can see, supply currently looks low due to an exhaustion in the selling.
A resurge from the current trading level could trigger a fresh increase in the market. That may lure the bulls back in the market. But as it stands now, the bears still appear in charge despite showing weakness. If they mount pressure to resume selling, they must retake the recent low before considering a continuation. For now, they appear stuck in the next move.
DOT’s Key Levels To Watch
Source: Tradingview
Advancing bearish, the $3.65 level is marked as key breakdown support. If that happens, the lower levels to watch for a dip would be $3.2 and $3.
There’s no enough pressure from the bulls’ side as they try to step back. If they manage to push higher, they may reclaim this week’s $4.2 high with a potential surge to $4.7. A further push there could allow buying to reach $5.3 and maybe $6 in the future.
Key Resistance Levels: $4.7, $5.3, $6
Key Support Levels: $3.65, $3.2, $3
- Spot Price: $3.98
- 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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