Polkadot’s market cap has decreased significantly since it initiated drops in March. Selling pressure currently appears low on the day as the price stalled at around $4 after resuming bearish two weeks back.
Nothing much has changed over the past week as DOT continued to lose momentum on a daily scale. The market bias remains bearish monthly but the landscape is likely to change from a technical perspective.
However, the late August drops have brought another swing low but the pressure has dropped since the start of this month, and now consolidates with choppy price actions. DOT’s supply currently appears low on the daily chart.
While these choppy price actions indicate that a surge in volatility is around the corner, we can expect an extension of the drops towards the previous monthly low when the supply level increases. A breakdown from there would confirm more dips until it finds a solid ground.
If this mentioned low produces support again, the price may retrace a little before resuming bearish actions. Retracing above the previous monthly high could lead to a slight break above the descending trendline, serving as dynamic resistance for months.
A further buy above the trendline could lead to a trend reversal from a short-term perspective.
DOT’s Key Levels To Watch
Source: Tradingview
Amid consolidation, the support level for drops lies at $3.59 – August low. If the price breaks below it, the potential level to watch for support is $3, followed by $2.
Currently, $4.5 is the closest level to keep in mind for a retest. Above it lies the $5.1 resistance – August high. In case of further increase, the $6 and $6.6 levels are the next resistance to watch for a test.
Key Resistance Levels: $5.1, $6, $6.6
Key Support Levels: $3.59, $3, $2
- Spot Price: $4
- Trend: Bearish
- 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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