Market Analysis

POLKADOT PRICE ANALYSIS & PREDICTION (May 2) – DOT Signals A Reversal Following 5% Daily Gains: Incoming Bullish?

Yesterday, Polkadot DOT found a temporal support after falling consistently for a week. The price increased and broke slightly above a crucial resistance line, suggesting a possible bullish reversal pattern on the daily chart.

Last week saw DOT through another decline after retesting the $7.58 level as resistance. It rolled back and broke down a minor support level, closing that week in a loss.

Selling volume increased this week and the crypto became more bearish due to a major crackdown in the global market. This brought the price down as it fell to a weekly low of $6 yesterday. 

It bounced off this low and closed strongly above the weekly high. That closing led to a slight break above a descending trendline, serving as dynamic resistance since March. 

Aside from that, it has technically formed a new double-bottom pattern on the daily chart, suggesting a potential bullish trend reversal. This could fuel a fresh positive action in the coming days if the pattern comes into play. Right now, there’s not enough buying volume. 

Now that DOT has established a new support above last month’s low, we can expect a big price movement in the next few days, providing a steady increase in the volume inflow. Otherwise, it may extend bearish actions daily.

DOT’s Key Levels To Watch

Source: Tradingview

Considering the last 24 hours increase, DOT may push to the $7.58 and $8.1 resistance levels if the buying volume increases well in the coming days. A weekly close above the $9.1 resistance could trigger a surge to $10 in no time. 

Losing yesterday’s $6 low could activate more sells to April’s $5.7 low. In case of a breakdown, the $5 and $4.5 level are lower supports to keep in mind.

Key Resistance Levels: $7.58, $8.1, $9.1

Key Support Levels: $6, $5.7, $5

  • Spot Price: $6.86
  • 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.

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

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