Polkadot DOT resumed a downtrend this week after failing to sustain recovery. The bears appeared back in control as they slowly released pressure. We can expect bigger drops if the price breaks below $6.
After ending a week retracement at $7.3, DOT initiated a fresh drop on Monday and continued its bearish impulsive movement on the daily chart.
This latest bearish movement is targeted at the $5 range in the near term. It may face some key levels on the way down before dipping to the target price level. Failure to bridge the $6 support could cause a slowdown in actions.
However, bouncing off this support may trigger fresh buying, possibly bringing the bulls back into the market. It may even lead to a trend reversal if the demand level increases. But from the look of things, the bears are more likely to stay longer until exhaustion sets in.
Another thing to consider for more bearishness is the lower low and lower high formation from the top – which technically indicates an intact downtrend market. With this bearish formation, we can expect a bigger price movement in the next few days.
Right now, there are no signs of buying in the market. The bulls are likely to suffer a huge loss until they react to the price actions with a strong interception.
DOT’s Key Levels To Watch
Once the price reaches $6, the next major support level to watch for a crackdown is $5.5. Below it lies the targeted support level. There’s also support at $4.83 and $4.4 in case of more dips.
If the price bounces back from the current trading level, the price may increase back to $7 and $7.3. A further push above these resistance levels could trigger more increases to $7.85 and $8.58.
Key Resistance Levels: $7.3, $7.85, $8.58
Key Support Levels: $6, $5.5, $4.83
- Spot Price: $6.6
- 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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