Polkadot suffered a lot of losses in the past months. It looks set up for another dip while the price oscillates around $5.3 for some days. Currently, the price is down 2% daily.
DOT has been in the middle of consolidation for close to two weeks now. But the sell-off does not look finished yet as it aims to navigate the $4.2 and $4.3 levels, standing as an important demand zone.
This consolidation phase came after the price tumbled from the $7 level in the past month with a total of 27% loss so far. The drop in volatility suggests that the selling volume is low. The current market phase is likely to be over soon as sellers wait to release more pressure.
Whether or when the price will sink further is what remains unknown at the moment. However, the bears are still in control. The bulls may suffer more loss if the bears resume pressure.
A push from the ongoing phase should bring a small price recovery. It could become significant if the price targets the descending resistance line forming since February. The price must break through that resistance line to confirm a bullish.
For now, DOT remains under the bears’ radar. They will continue to gain control until the bleeding stops. So far, the cryptocurrency has lost roughly 38% of its price in the last 90 days of trading.
DOT’s Key Levels To Watch
Polkdot is preparing for a fresh decrease. The potential support to keep in mind for this drop is $5.18, followed by $64.72. The next support level is located at $4.4.
If the price increases, the key resistance level for a retest lies at $5.76. An increase above that level could send the price to $6.1, testing the resistance line. The resistance level above it is $ 6.6.
Key Resistance Levels: $5.76, $6.1, $6.6
Key Support Levels: $5.18, $4.72, $4.4
- Spot Price: $5.3
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.