Polkadot saw a rejection and followed a downward shift after almost touching $8 in mid-February. It closed the month weak but has shown a small sign of strength today. More recovery could surface in the next couple of days.
So far, DOT has seen relative growth over the past months as the trend turns in favor of the bulls. The year-to-date profits have accrued to about 50% despite losing almost 30% of its gains in the last two weeks.
Last month saw the asset through a little correction phase after posting several gains in the first month. The price broke out of the structure and tapped $7.9 on February 19, but the momentum failed due to a sharp rejection.
It dropped to a two-week low of $6.3 yesterday but increased slightly today following the overnight recovery in Bitcoin’s price. As a result of this, Polkadot has started to show little strength but is not noticeable enough to signal a green light for a buy.
The forming bullish pattern on the daily chart suggests a potential swing high, which is capable of skyrocketing the price well above the $8 mark in the coming weeks. Bitcoin will have to reclaim lost highs alongside.
Shorting below the orange supply zone – as shown on the daily chart – will cause a serious loss in the future. A look at the setups from a technical perspective indicates a bullish continuation for this month.
Polkadot’s Key Levels To Watch Out For
The crucial resistance levels to keep in mind for more upside moves are $7 and $7.43, marked as the mentioned supply zones. The $8 resistance level is also considered a pivot level for a breakout. Above it lies $8.64, $9 and $9.6.
In the case of more decline, the $6.4 level remains minor support, followed by major support at $6. Lower support levels to watch are $5.6 and $5 in case of a breakdown.
Key Resistance Levels: $7, $7.43, $8
Key Support Levels: $6.4, $6, $5.6
- Spot Price: $6.5
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: skorzewiak/123RF // Image Effects by Colorcinch
