The current price movement of Polkadot (DOT) is indicating bearish signs, particularly below the $8 resistance level against the US Dollar. The price has already dropped below the $7.20 zone and is trading under the 100 simple moving average (4 hours). This downward trend is concerning and could potentially lead to further decline.
There is a key resistance trend line forming at $6.50, according to the 4-hour chart of DOT/USD pair from Kraken. If the price fails to stay above $6.00, it might extend its decline towards the $5.00 support zone. The immediate resistance is around $6.50, followed by $7.00 and $8.50 levels. On the other hand, the key support levels are near $6.00, $5.65, and $5.00 respectively.
After facing resistance near $7.60, DOT price experienced a decline below $7.00, similar to other cryptocurrencies like Ethereum and Bitcoin. The price formed a low near $6.03 and is currently consolidating losses. It has started to move higher towards the $6.35 level and the 23.6% Fib retracement level. However, it is crucial for DOT to break above $7.00 to initiate a strong rally towards $8.20 in the short term. The next resistance is located at $10.00.
The MACD for DOT/USD is showing a loss of momentum in the bearish zone, signaling a potential downtrend. The RSI for DOT/USD is currently below the 50 level, indicating a bearish sentiment. These technical indicators suggest that the price is under pressure and could continue to move downwards if it fails to break above key resistance levels.
It is important to note that the information provided in this analysis is for educational purposes only. It does not represent the opinions of any specific entity regarding investment decisions. Investing in cryptocurrencies carries risks, and it is advisable to conduct thorough research before making any investment choices. Users should use the information provided here at their own discretion and risk.
Leave a Reply