POLKADOT PRICE ANALYSIS & PREDICTION (May 16) – DOT Tests $7 Following A Short Bounce, Can It Scale Through? 

After taking a two-week downturn, DOT located a threshold and initiated a fresh increase following a sudden 5% surge yesterday. It paused buying and now looks indecisively weak on the daily chart.

Since the price bounced sharply from $5.7 last month, DOT has remained in a consolidation phase, looking for a key level to initiate a surge amid low volatility. 

Fortunately, it found another support above the $6.4 level this week and the price increased significantly yesterday, making it the third recovery attempt in a month. It is yet to reiterate bullish actions today as it trades calmly at $6.9 at the time of writing. 

Advancing higher in the next few hours could take us above the $7 range while remaining in a consolidation phase. A clear surge above the $7.5 level should validate a break out of this phase. Such a breakout could lead to a shift in the trend as the price increases.

The recent market structure appeared to have suspended bearish correction due to the past weeks of recovery. Right now, the bulls are slightly gaining control. But if the price closes weak today, the bears will likely step back. 

Considering the last 24-hour surge, the bulls are expected to gain more dominance in the coming hours. Despite recent market correction, the price is still up 32% in the last six months.

DOT’s Key Levels To Watch

Source: Tradingview

Now that the market is facing some hurdles at $7, the closest resistance to watch for a surge is $7.5. Above this resistance lies April’s breakdown level of $8.1, followed by $9.1.

The market is currently supported by the $6.45 level. A drop below this level could slide the price back to the $6 and $5.7 supports before breaking lower.

Key Resistance Levels: $7.5, $8.1, $9.1

Key Support Levels: $6.45, $6, $5.7

  • Spot Price: $6.92
  • 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!

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

Leave a Comment

Your email address will not be published.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