Last month saw DOT through a major breakout of a descending wedge. It retested the wedge as support and rebounded with a substantial gain. The price is now stalled under a key resistance level due to rejection.
DOT started to recover in mid-October after experiencing a severe drop to $3.6 – which marked its lowest price level in the past year.
After that, it saw a five-day surge to the high of $4.37 and later saw a rejection. Meanwhile, that surge brought the price out of an eight-month descending wedge. The price pulled back and retested the wedge as support.
The price bounced back well last week and crossed into this week positively. However, it encountered resistance at $4.8 yesterday and has remained stalled under it since then. A weekly close above this vital resistance could sustain buying pressure for a while.
Nonetheless, the trend is still bullish on the daily chart. But if this resistance holds strong and at the same time poses a threat to buying, the price may drop briefly to nearby support before picking up again.
Looking at the market structure from a long-term perspective, the price is still much in favour of the bears. DOT must reclaim July’s high to keep the bulls on track in the short term.
DOT’s Key Levels To Watch
If DOT manages to push through the current holding resistance of $4.81, the next area of interest for the buyers would be $5.1, followed by $5.5 before rising to $5.76 – marked as July’s high.
A pullback from the current trading level could slip the price to close support of $4.3. There’s also support at $3.9 in case of a deep pullback. The main support for a breakdown lies at $3.6.
Key Resistance Levels: $4.81, $5.1, $5.5
Key Support Levels: $4.3, $3.9, $3.6
- Spot Price: $4.64
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.