Suspending bearish correction last month, DOT went through a short recovery and retested a key price level. But it currently appeared to have resumed bearish after failing to break above a mid-term resistance line.
After opening short in September, DOT located support and increased steadily until the price tested a descending trendline that has been serving as a dynamic resistance since April. It failed to break through this crucial trendline and ended that month slightly weak.
This weakness led to a bearish start this Monday and the asset declined, trapping many buyers at $5. While they were hoping for recovery earlier yesterday, things became worse as the price slipped near the key $4 level yesterday – starting the month of October bearishly.
It has rejected the key level with a slight bounce to $4.2 at the moment. A drop below August’s low could result in another breakdown capable of causing a serious reduction while the bulls continue to suffer losses.
If the bulls manage to intercept the latest move above August’s low, we may see a push above the mentioned dynamic resistance line. This could bring a change in the market character in the daily timeframe.
But now that the bears are back in action, DOT may continue to make a lower low and lower high movement until the price is overstretched.
DOT’s Key Levels To Watch
Source: Tradingview
In the ongoing drops, the key target support level to watch for a test is August’s $3.59 low. A breakdown from there could dipped the price to $3 and probably $2 in the future.
For a rebound, DOT must retake yesterday’s high with a surge to the important $5 resistance level, located above the trendline. Subsequent resistance levels above it are $5.5, $6 and $6.6 respectively.
Key Resistance Levels: $5, $6, $6.6.
Key Support Levels: $3.59, $3, $2.
- Spot Price: $4.2
- Trend: Bearish
- 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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