Since the price crashed to $5.35 a few days ago, Polkadot struggled to recover well above $6. Instead, it flagged another bearish after the price saw multiple rejections at a crucial supply zone.
The bearish action appeared to be painting an uglier scenario for Polkadot following the crash from $7.43 around the channel’s resistance.
It has made another downward shift after a brief correction to the crucial supply zone at $6 (marked orange) last week. The price fell to a low of $5 this week and bounced slightly to where it’s changing hands at the $5.3 price level. The crypto currently signals more drops.
After it recently marked the highest selling volume in the past three months of trading, the volatility stalled, and it started to form a choppy price action.
Polkadot could find a bottom around the channel’s support if the bears keep mounting pressure in the market. It might encounter some support along the way. This might just be the beginning of the fall for Polkadot.
For this market to turn bullish again, it would need to find solid support for a rebound to reclaim the previous rejection level of $6. With the look of things now, there’s no hope for the bull. DOT remains bearish on the current daily chart.
Polkadot Price Analysis (DOTUSDT): Daily Chart
The price just got rejected at $5.5 resistance on the hourly chart. If the level continues to reject price actions, the closest level below the holding $5 support level is $4.51. There’s also a support level at $3.89 in case of bearish continuation. The $2.5 and $3 are support levels to keep an eye on in the long run.
On the other hand, Polkadot held crucial resistance at $6. The level above this resistance lies at $6.66 around the channel’s resistance. A push above this resistance would signal a positive move. For now, it’s still following a negative sentiment.
Key Resistance Levels: $6, $6.66, $7.43
Key Support Levels: $5, $4.51, $3.89
- Spot Price: $5.38
- 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.