After remaining indecisive throughout the past week, Polkadot’s price slipped a bit and resumed calmness with a retest of breakout recently. It showed signs of weakness amid the latest bearish actions.
DOT resumed a downtrend in mid-April following a month’s recovery. The price fell for three days and stayed calm until it witnessed a slight drop last weekend.
It broke down and extended bearish below a four-month symmetrical triangle on Monday and retested it as resistance yesterday. It rejected the $5.9 price level today and initiated a sudden short below yesterday’s low – repeating last weekend’s pattern.
Though the buyers can still react to price action with a strong commitment. But losing the $5.6 weekly low could paint a serious red in the next couple of days. The sudden price rejections suggest that the bears have started to mount pressure again.
Things might get worse in the coming days but as it is now, selling volume is still low. If the price further dips and March’s low fails to produce a rebound, the price could revisit the 2022 low before it regains momentum. It must recover above the $7 resistance level before we can start to welcome the bulls back into the market.
Amid the drops, Polkadot shed a 5% loss to mark a three-week low over the past hours. We can see the daily volume indicator is decreasing by the day to show a weakness in price.
DOT’s Key Levels To Watch
While facing down, the next stop to watch out for is the $5.18 level, followed by $4.72. A further dip could bring the price to a retest of $4.4 and $4.2 in the future.
Key Resistance Levels: $5.76, $6.1, $6.6
Key Support Levels: $5.18, $4.72, $4.4
- Spot Price: $5.6
- 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.
Image Source: moxumbic/123RF // Image Effects by Colorcinch
