DOT Price (Polkadot) Approaches Key Level: Should Traders Brace for Sharp Drop?
May 01 2024 - 12:58AM
NEWSBTC
Polkadot (DOT) is showing bearish signs below the $8 resistance
against the US Dollar. The price could extend its decline if it
fails to stay above $6.00. DOT is gaining pace below the $8.80 and
$8.00 levels against the US Dollar. The price is trading below the
$7.20 zone and the 100 simple moving average (4 hours). There is a
key bearish trend line forming with resistance at $6.50 on the
4-hour chart of the DOT/USD pair (data source from Kraken). The
pair could continue to decline toward the $5.00 support zone.
Polkadot Price Resumes Drop After a steady increase, DOT price
faced resistance near the $7.60 zone. It formed a short-term top
and started a fresh decline below the $7.00 level, like Ethereum
and Bitcoin. There was a move below the $6.20 support zone. A low
was formed near $6.03 and the price is now consolidating losses. It
is slowly moving higher above the $6.35 level and the 23.6% Fib
retracement level of the downward move from the $7.58 swing high to
the $6.03 low. DOT is now trading below the $7.00 zone and the 100
simple moving average (4 hours). Immediate resistance is near the
$6.50 level. There is also a key bearish trend line forming with
resistance at $6.50 on the 4-hour chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com The next major resistance is near
$7.00 or the 61.8% Fib retracement level of the downward move from
the $7.58 swing high to the $6.03 low. A successful break above
$7.00 could start another strong rally. In the stated case, the
price could easily rally toward $8.20 in the near term. The next
major resistance is seen near the $10.00 zone. More Downsides in
DOT? If DOT price fails to start a fresh increase above $7.00, it
could continue to move down. The first key support is near the
$6.00 level. The next major support is near the $5.65 level, below
which the price might decline to $5.00. Any more losses may perhaps
open the doors for a move toward the $4.20 support zone or the
trend line. Technical Indicators 4-Hours MACD – The MACD for
DOT/USD is now losing momentum in the bearish zone. 4-Hours RSI
(Relative Strength Index) – The RSI for DOT/USD is now below the 50
level. Major Support Levels – $6.00, $5.65 and $5.00. Major
Resistance Levels – $6.50, $7.00, and $8.50.
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