Starting this week on a bearish note, Polkadot DOT appeared to have found support but is yet to bounce back on the daily chart. A big price movement should be expected soon following a fresh bullish setup daily.
Looking back, Polkadot has posted notable gains over the past weeks, but it is yet to witness a full recovery to the top as it slowly builds up for an explosion. Although, the price is down by over 10% in a month.
Establishing multiple supports as higher lows in a month, the price broke out of a key resistance last week and created a new higher high pattern on the daily timeframe. This led to a slight shift in the market structure after tapping $7.8 on Monday.
A rejection occurred and the price dropped consistently until it tested the $6.8 level yesterday. It created another higher low and is now gearing up for an increase. A push above Monday’s high could bring us to the $8 range and beyond.
If the price drops below yesterday’s low, we may see a huge loss capable of returning to the second-quarter low. Such a scenario would invalidate the existing higher high and higher low patterns.
Having said that, the overall bias of this market remains bullish on the daily timeframe. Due to this, we can expect more positive actions to play.
DOT’s Key Levels To Watch
Following this week’s drops, DOT is now holding the $7.4 and $7.78 levels as resistance. Surging through these levels could rally the price to the $8.1 and $9.1 resistance levels in no time.
If this asset continues to lose momentum, the closest level for support is $6.45, followed by $6 and $5.7. Slightly below this level lies the $5 levels.
Key Resistance Levels: $7.4, $7.78, $8.1
Key Support Levels: $6.45, $6, $5.7
- Spot Price: $7
- Trend: Bearish
- Volatility: Low
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!