Amid a recent bloodbath, Polkadot DOT found a solid ground level and climbed back above the lost $6 level. It is currently facing a key resistance line on the daily chart. A break above this resistance should signal a buy.
Last week saw Polkadot through an extension of a correction and the price further dipped to $5.4 this week, marking its lowest price level since last December. This level held as support and the price bounced.
The bounce subjected bearish actions into a brief consolidation phase and the selling pressure cooled off for a while. A surge occurred and the price increased to a daily high of $6.38.
This surge, which marks the highest buying volatile session since its initiated second leg down late last month, signals a bullish footprint in the market. Currently, the asset is facing a descending resistance line, which has been suppressing bullish actions for a month.
A break above this resistance could activate a huge surge in the next few days. Even if the price breaks through, it must increase well above the $8 level before we can confirm a market structure shift from a short-term perspective.
While the trend is still much in favour of the bears, a dip below this week’s low could bring more drawdown in the market until it hits $4.
DOT’s Key Levels To Watch
Source: Tradingview
If the bulls manage to push above the descending resistance line, their next line of interest would be $6.9 along with the $7.3 and $7.78 resistance.
So far, the $6 and $5.4 levels are currently providing support on the daily chart. If these levels collapse as a result of a dip, the $4.85 support would be the next area of interest for the bears.
Key Resistance Levels: $6.9, $7.3, $7.78
Key Support Levels: $6, $5.4, $4.85
Spot Price: $6.3
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.
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