Amid the current market upsurge, Polkadot remained extremely oversold on the daily chart as it continues to trade in a bearish zone. However, the price increased by 3% today, but not enough to activate bullish.
DOT has been struggling in a bearish zone since the price dipped to the $3.5 level on Thursday. It held that level as support and bounced off.
However, it has been finding it difficult to resume bullish despite the latest increase across the market. While the asset took a slight breath in the monthly breakdown, the price remains calmly in the middle of consolidation.
The price is now recovering back towards last week’s rejection level of $3.9. A push above this level could trigger a breakup from the mid-term descending triangle. Should that happen, we can expect a strong buy above $4.
If we look back to where the price started to drop in February, it appeared to have reached an extreme oversold. The price is almost reaching a tight angle on the descending triangle pattern due to a contraction – suggesting a big expansion is around the corner.
Before we can start to consider a bullish trend on the daily chart, DOT must form a higher high and higher low pattern. Otherwise, the price will continue to dip and remain under the bears’ radar until it finds a bottom.
DOT’s Key Levels To Watch
As DOT continues to consolidate on a daily, the immediate resistance level to watch for a test is $3.91. An increase above $4 could allow the price to further test the $4.3 and $4.81 resistance levels, located above the triangle.
On the other hand, losing the $3.6 support level could activate more selling to $3.3 and perhaps $3, which is rightly sitting at the lower boundary of the triangle.
Key Resistance Levels: $3.91, $4.3, $4.81
Key Support Levels: $3.6, $3.3, $3
- Spot Price: $3.79
- 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.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: vlastas/123RF // Image Effects by Colorcinch