DOT’s price remained in the middle of consolidation after marking a multi-low last month. While the daily outlook remains bearish, the buyers attempt to step back.
Polkadot technically looks bearish from a mid-term perspective. But it has paused selling above the $5 price level since early May, subjecting the price actions to a consolidation phase up till this moment.
This four-week consolidation phase is likely to trigger another major decline if the price eventually plunges below the mentioned price level. Although, the price is still facing downward as the bears aim to retest the 2022 bottom.
Earlier today, the price tested the $5.43 level due to the ongoing increase in the overall market. It later saw a quick rejection at that price level and fell back. This reaction suggests that the bears are still present in the market with a strong interest in the price.
From a technical standpoint, the bearish sentiments appear not over yet. DOT could initiate another major breakdown to around $4.3 before it finds a strong level to foot bullish actions.
Looking at the market structure over the past year, the price is still down by 44%. The price must increase well above the descending trendline before we can validate a strong bullish rally. As it stands now, the bears remain in control.
DOT’s Key Levels To Watch
If DOT initiates another drop below the holding $5.18 level, the potential support to consider on the way down is $4.72. The key support to watch for a rebound is the $4.4 level.
Breaking above the consolidation phase at $5.5, the immediate resistance level to keep in mind is $5.76, then followed by $6.1 – testing the descending trendline. Above it lies $6.6.
Key Resistance Levels: $5.76, $6.1, $6.6
Key Support Levels: $5.18, $4.72, $4.4
- Spot Price: $5.2
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Image Source: shimanovichs/123RF // Image Effects by Colorcinch
