A downtrend line on an ongoing correction pushed Polkadot (DOT) price down to $7.3. However, the price of the coin pulled back from this support with the morning star candle, causing an occasional pullback.
key points:
- DOT price approaching overhead trendline
- The 20 DMA is aligned with the Dynamics resistance trendline
- Polkadot coin has a 24-hour trading volume of $1.8 billion, which indicates a 10% loss.
Source-tradingview
During the past four months, the price of Polkadot (DOT) saw a range-bound rally, resonating between $23.5 and $16. However, a recent reversal of range resistance responded to the downtrend line and declined x% to $16.
However, the selloff in the crypto market last week intensified the selling pressure and the price of DOT fell below $16. As a result, the decline caused the altcoin to drop another 48% and lower it to the $7.3 support level.
Moreover, a short volume reversal from this support indicates a minor relief rally that will soon continue the prevailing downtrend. DOT price is currently trading at $11.05 with an intraday gain of 26.8%.
If buyers continue to push higher, the altcoin will retest the overhead resistance trendline to replenish selling momentum. A possible reversal will revisit the $7.3 support level and threaten a bearish breakout.
Conversely, a sudden increase in bullish momentum could break the resistance trend line to kickstart a new recovery rally.
technical analysis
The MACD slope shows a sudden increase and narrows its gap with the signal line. These lines near the bullish crossover may prompt buyers to break above the overhead trendline.
However, the recent downside crossover between the 50 and 100-day DMA completed a bearish alignment between the 20, 50, 100 and 200 DMA. Furthermore, the coin price trading below these DMAs indicates that the path of least resistance is to the downside.
- Resistance Levels – $14.2, and $17
- Support Levels – $10.2 and $7.3
The material presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for your personal financial loss.