Since the price crashed to its local bottom last month, DOT has been struggling to regain momentum daily. It has recovered briefly and now under retracement as it posted an 11% gain in the past week of trading.
The recent price retracement has brought a slight gain to Polkadot price over the past week. However, the momentum may not last long as the buying pressure is not strong enough to bring the bulls back on track.
As seen on the daily price chart, DOT’s demand level appears low at the time of writing but it may later increase if volume keeps flowing into the market daily. If not, the market may continue to supply until it finds a threshold.
Considering the early August’s crash, which plunged the price to a current yearly low of $3.6, DOT is suggested to have reached a bottom after exhausting selling pressure. Observing the market since then, market volatility has been very choppy.
Despite that, the overall market bias remains bearish on the macro level. A drop below the current yearly low could facilitate more sell-offs in the near term. Holding it well could lead to a change in the bearish trend.
So far, DOT has recorded a total loss of 57% in the past six months with no major signs of bullish at the moment. An increase above the falling resistance line should signal a breakout capable of returning the bulls.
DOT’s Key Levels To Watch
If demand rises, the next buy level for an increase would be $5.1 – last month high. A break through it could propel buying to $6 and $6.6.
The ongoing retracement is supported by the $3.8 level. If the price falls below this level, the lower support to consider for drops is $3.59 before dipping to $3 and potentially $2.
Key Resistance Levels: $5.1, $6, $6.6
Key Support Levels: $3.59, $3, $2
- Spot Price: $4.4
- Trend: Bullish
- Volatility: Moderate
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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