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Polkadot Price Analysis & Prediction (May 16th) – DOT Cools Off After Meeting Key Support, a Calm Before The Storm?

Polkadot continued to suffer loss after witnessing a series of drops in the last month. The selling pressure has cooled off a bit, but it is likely to resume soon. However, it has lost roughly 25% in the past month.

The past weeks of bearish correction have caused a lot of pain for the bulls as they remain in disbelief. DOT found temporal support this week and cooled off in the past few days. 

Last week, the price entered a brief consolidation phase following a steady decline from $7 in mid-April. During that phase, the crypto retraced a bit and breakdown support as resistance and immediately initiated a sell action that slipped the price below the $6 level. 

The bearishness crossed over into this week and caused the price to dip to an important $5.2 support level on Monday, marking its lowest price in two months. Due to low volatility, that level has been suppressing bearish actions for about three days now. 

Let’s consider recovery from the important support level. The price will have to face some previous lost levels as resistance before it recovers fully. Currently, it has shown no signs of strength. 

If DOT resumes selling pressure below this support level, we should expect a deeper correction to last December’s low. Such a scenario is expected to keep the bears more in control.

DOT’s Key Levels To Watch

polkadot price analysis prediction
Source: Tradingview

While trading calmly above an important level, the levels to consider for a drop lies at the $5.18 support level. The lower level to keep in mind is $4.72. There’s also support at $44 in case the price keeps falling. 

If a rebound occurs, the immediate resistance level to watch for a retest is $5.76. The resistance level above it is $6.1. Reclaiming the $6.4 and $6.6 resistance levels could send the price to $7 and beyond.

Key Resistance Levels: $5.76, $6.1, $6.6

Key Support Levels: $5.18, $4.72, $4.4

  • Spot Price: $5.2
  • 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.

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

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