Crossing over a crucial resistance line this month, DOT rallied to a new high for the first time in eight months. Rejecting the new high today, it retraced sharply but remains highly bullish with a weekly 55% gain.
Bouncing off the $3.7 level earlier this month, DOT surged steadily and saw its first major breakup to $5.8 after four months of trading. Initiating a pullback to retest the flipped five-month resistance line as support, it found support nearby and resumed a rally until the price hit $10.5 today.
This marked a significant shift in the market structure, as it completely got out of the woods from a short-term perspective. However, the bears intercepted the surge today while attempting to reclaim the yearly high.
Despite that, it still appears highly bullish on the daily chart. In contrast, the latest bearish interception may lead to a key retest of close support levels that flipped as resistance during the past weeks of surge.
A further surge in volatility could bring a major price break for a long-term move. That said, the overall market outlook is considered bullish in the short term, increasing by almost 2x in the last three weeks.
DOT’s Key Levels To Watch
Source: Tradingview
The latest interception has brought a little drop near the $7.77 support level. Failure to hold above this support could result in more drag down to the $6.6 support or even $6. Subsequent support levels for a broader drop are $5.47, $4.7 and $4.25 respectively.
Looking ahead, $9.5 and the $10.65 level are key resistance to watch for now. Flipping through it could trigger a notable breakout to $11.9 before making a long-term shift in the market structure.
Key Resistance Levels: $9.5 $10.65, $11.9
Key Support Levels: $7.77, $6.6, $5.47
- Spot Price: $8.52
- 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.
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