Correcting by more than 65% in five months, DOT rolled back to local bottom and entered oversold condition. However, it recovered briefly but has resumed drop due to a rejection. It currently appeared weak.
The late July meltdown saw Polkadot through its biggest drop since May but it later found a solid ground after retesting back to bottom last week.
It sharply rejected the bottom and recovered a bit to test last month’s $4.9 support as resistance in the mid-week. Unfortunately, the resistance suppressed further buying and the price fell to a low of $4.2 yesterday.
Due to a small 2% gain today, the price has increased to $4.3 at the moment. Though the bears are still in control as the price remains weak. Looking at the recent rejection at the bottom, which suggested a possible exhaustion in selling, we may see a positive change in the market soon.
If the crucial $3.5 level, which serves as major support since 2023 stands firms in the current drawdown, the trend will likely reverse. If not, a crack below this crucial level could cause a big crash to a new year low.
Should in case the market repeat April price pattern, DOT may subject the trend to sideways for a while before deciding on the next direction.
DOT’s Key Levels To Watch
Source: Tradingview
While the price is facing down, the $4.19 level is currently providing support. Below it lies the monthly $3.59 low. A breakdown from here could trigger a big crash to $3 and potentially $2.
If the price manages to recover again, the $4.915 resistance level may pose threat to the bulls. A push above it could allow further buy to $5.4 and $6. The $6.6 level remains an important resistance to watch for an upward shift.
Key Resistance Levels: $4.915, $5.4, $6
Key Support Levels: $4.19, $3.59, $3
- Spot Price: $4.3
- 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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