Polkadot remains in bullish territory with no sign of breakdown at the moment. Although it recently witnessed some loss but has found dynamic support. Yesterday, it initiated another buy on a daily scale.
DOT has shown no strong signs of correction despite charting about a 43% increase in the space of a month. It recorded a few losses days back but appeared to have found new support. The suspense will likely continue for the bears as they suffer more loss.
The condition of the market right now looks a bit boring due to the low buying volume on a daily scale. The buyers are showing little interest in the market. Meanwhile, it has footed a strong bullish pattern on the 4-hour time frame with higher highs and higher lows from around $5.6.
This pattern could lead to a massive price movement if it comes into play. DOT is supported by the current weekly low. If the price falls and breaks down this low, we can start to consider a sell action. A continuous dip will set the price for a correction.
For now, Polkadot still looks bullish despite the past days of reduction. It has continued to trade in a bullish zone with a daily 4% increase.
Polkadot’s Key Levels To Watch Out For
Following the bullish pattern on the lower time frame, the next area of interest is the previous resistance of $7.12. Higher resistance levels to keep in mind for a swing are $7.4 and $8. It may even rally to $8.6 if a surge in volatility occurs.
Losing the weekly $6.5 support could cause a severe sell-off. Should such a scenario happen, the closest support to pay attention to is the $6 level. Below this level lies the $5.8. if the selling pressure continues, it could revisit the mid-January pullback point at $5.6.
Key Resistance Levels: $7.4, $8, $8.6
Key Support Levels: $6.5, $6, $5.67
- Spot Price: $6.9
- 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.
Image Source: valedol/123RF // Image Effects by Colorcinch