Polkadot has been looking calm for the past few days after initiating a sell action from a channel’s resistance. It appeared to be gearing up for a fresh rally as the price consolidated below a key resistance level.
Since Polkadot lost the $16 support level in May, the market has continued to paint a lot of red as the price keeps dipping by the day. It is yet to make a significant rally to indicate a reversal.
These past months of decrease have positioned the 11th best-performing cryptocurrency by market cap in a serious bearish condition. The daily chart’s lower low and lower high formation is maintained in a channel pattern.
Just after testing the channel’s resistance earlier last week, the price fell heavily and broke through $5.7(a 5-month low) before it dropped to a new low of $5.34, which is now acting as support for the past week.
Meanwhile, the price has bounced slightly from the new low on November 9, but it has failed to close above $6, which has remained a critical resistance level for DOT to reclaim. Unfortunately, the price is struggling as it consolidates under this critical level.
A continuous rejection at this level will likely trigger another sell action toward the channel’s support in the future. Currently, there’s not enough buying volume in the market to fuel and capture bullish momentum.
Polkadot Price Analysis (DOTUSDT): Daily Chart
Here are key levels to pay attention to if DOT expands from the ongoing consolidation phase.
Considering the existing trend, the first line of support is the current holding level of $5.35. The next support level to watch is $4.51, then followed by $3.89. If these supports fail to contain pressure, we can expect the rally to bottom at around $3, located around the channel’s support
On the other hand, a change in the trend could lead to recovery above the $6 resistance level. By then, we can consider $6.66 as the next resistance level. The resistance above the forming channel is $7.43.
Key Resistance Levels: $6, $6.66, $7.43
Key Support Levels: $5.35, $4.51, $3.89
- Spot Price: $5.71
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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Image Source: František G. on Unsplash // Image Effects by Colorcinch
