Polkadot registered one of its major losses this week after witnessing a small increase in two weeks. However, it has seen a nice recovery in the last 48 hours and is now regaining strength with a daily 1% gain.
On Friday, DOT dipped heavily to around $4.9 following a new weekly sell order that led the market into a more bearish condition across the major timeframes.
Surprisingly, the bulls intercepted with a long-wick rejection and the market recovered quickly with a daily close above the $5.6 level. The bulls reiterated actions yesterday and further pushed the price higher to where it is floating at $6.2 at press time.
The price appeared strong on the day but there’s no assurance that it can sustain momentum due to the heavy supply which could outweigh the demand soon. As a result, we may see more drawdowns in the upcoming week considering the ongoing bearish sentiment surrounding the space.
However, if the demand level increases (through steady volume inflow), we can anticipate healthy growth in the coming days. This could bring the bulls back in action and potentially lead to a reversal trend.
While the market continues to gain traction on the day, the trend is still in a downward range and a continuation of the selling pressure could return the bears to control.
DOT’s Key Levels To Watch
Source: Tradingview
In the meantime, the $6 and $5.4 levels are support to watch for a drop. Below it lies the weekly holding of $4.915 support. If the price dips below it, the $3.9 level would be the next stop to consider for a crackdown.
Looking ahead, the potential resistance line for buying right now is $6.9. A push above it could see us to $7.78 and potentially $8.6 in the future.
Key Resistance Levels: $6.9, $7.78, $8.6
Key Support Levels: $6, $5.4, $4.915
Spot Price: $6.2
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!
