The past three weeks saw DOT through a major corrective phase after posting 80% gains in two months. But now, it appeared to have ended the phase as it bounced off a key support trendline, looking poise for another run-up.
Looking at the latest daily price actions, the asset has not just rejected the $8 level in the recent dip but has recovered briefly with a bullish pin bar candle formation, followed by an engulfing candle at the time of writing.
That technically suggests a potential increase and as seen on the chart, the price is up in the past 48 hours, signalling a mid-week reversal.
Another indicator of this bullish signal lies in the latest bounce off the important ascending trendline, providing support since late 2023. Following the past setups, this pattern looks exactly like the early-year bounce that shot the price near $1.89 in March. Repeating it could fuel an impulsive move to $15 in the coming months.
Meanwhile, there are many obstacles for the bulls as they slowly return. In their quest to conquer those obstacles, last month’s high remains the main resistance level to watch for a breakup. That should confirm a stronger if they scale through. But as of now, DOT is still considered bearish on the chart.
DOT’s Key Levels To Watch
Now that the price has bounced back above the $8.58 level – hourly support – the next line of resistance for the bulls would be this week’s crackdown level of $9.6. A stronger push could bring recovery to $10 and $10.65
If DOT invalidates the latest buy signal with a bearish extension under the holding $8 support, the price may break down the ascending support line to $7.85 and $7.3.
Key Resistance Levels: $9.3, $10, $10.65
Key Support Levels: $8, $7.85, $7.3
- Spot Price: $8.6
- 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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