The price activity indicates that the crucial demand level is being traded at for the DOT coin price. The price of coins is currently settling. On a daily time frame, the coin price is developing a reversal chart pattern. The coin price can surpass the crucial supply zone of $6.07 with a powerful bullish candlestick pattern on the daily time period.
DOT coin price forms negative price structure
If the DOT coin bounces off the demand zone, the price may be seen speeding to the supply zone. The 14 Simple Moving Average line, the yellow 50 and 100 Moving Average lines, and the price of the DOT currency are all now trading below them. The main MAs collapsed as a result of the coin price breaking through the demand zone during the most recent sell-off.
The price of the DOT currency may find resistance when it rises from these MAs. After failing to surpass the top band, the DOT currency price is now moving towards the bottom band of the Bollinger band indicator. The present widening of the Bollinger band range suggests that the next several days will see a sideways trend.Since the coin started to become volatile, volumes have surged.
The DOT coin price is forming a falling wedge pattern on a daily time frame
The DOT coin price is trading at the demand zone, after failing to surpass the supply zone. Recent bearishness has resulted in the coin price breaking the super trend buyline which was acting as a strong support area. The recent breakdown has resulted in the formation of a super-trend sell line. Moving upwards the coin price can be seen facing strong rejection off the supertrend sell line..
As the price of the coin dropped to the demand zone, the MACD indicator produced a negative crossing. On the bottom, the blue line crossed the orange line. As a result, the coin price drastically decreased over the course of four hours. Recently, following the breach of a long-term support level as a retest, the price of the DOT currency increased. The difference between the blue and orange lines can be seen growing to support the trend as of right now, when the coin price started stabilising once again after leaving the supply zone.
ADX has been continuously falling as the coin price broke an important demand zone on a weekly time frame. As of now, the coin price is trading above this important demand zone. The demand zone is now acting strong as the coin price shows bullishness. At present, the coin price is trading in a strong momentum, and if the same continues the coin price can be seen moving higher in the upcoming days. ADX curve has turned sideways indicating a halt in the price stricture and possible change in the movement of the coin price.
Conclusion: DOT coin price is in a bearish trend on a lower time frame. While on a larger time frame the coin is consolidating in a small range. The technical parameters are also seen supporting the trend as they turn bullish. Investors should wait for a confirmation of the breakout of the reversal chart pattern and then act accordingly.
Support: $5.4 and $5.1
Resistance: $6.8 and $7.1
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/09/dot-coin-price-analysis-coin-price-plunges-to-the-demand-zone/