Market Analysis

POLKADOT PRICE ANALYSIS & PREDICTION (January 8) – DOT Reaches a Key Support Level After Two-Week Drops, Possible Rebound?

DOT has been on a steady fall for almost two weeks. It has lost a lot of key levels for rebound and is now in search of solid ground. The price may roll back to the bottom if the current support level fails to hold. 

Last month ended slightly bearish for Polkadot after rising by over 150% within two months. Before then, it tried to regain momentum but the selling pressure turned out heavy by the day. 

Following a small buying reaction earlier this week, the price bounced briefly but failed to push above the $8.8 level. It marked this level as resistance and initiated another drop. 

This brought a big collapse to a month low before recovering in the mid-week. After that, it consolidated above the $7.4 level throughout Thursday but later fell and is now rolling back near the recent low. 

So far, it has shed almost 13% loss over the past week. If the supply becomes heavier, we can expect the price to keep falling until it finds solid ground. Currently, the price is sitting at support. 

However, there are no signs of buying at the moment. If the buyers show interest and manage to step back, we may see a small recovery before it resumes selling on the daily chart. As it stands now, the bears are in control.

DOT’s Key Levels To Watch

Source: Tradingview

While facing down, the closest support level for drops right now is $7. If the price cracks below this level, the next support to consider would be $6.5, followed by the $6 level to retest the inverse H&S neckline that broke last month.

If recovery occurs, the immediate resistance level to watch is $7.4 before rising to $7.9. If the price recovers above these levels, the next line of resistance would be $8.5, followed by $9 and $9.6.

Key Resistance Levels: $7.4, $7.9, $8.5

Key Support Levels: $7, $6.5, $6

  • Spot Price: $7
  • 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.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: valedol/123RF // Image Effects by Colorcinch

Leave a Comment

Your email address will not be published. Required fields are marked *