The roller coaster continues. Polkadot extends bearishness towards the $5 price zone following the recent sell-off. It shows no signs of significant recovery as the price suffers more loss.
Many things have happened in this space over the past few days as Avalanche maintains bearish. The ongoing meltdown has continued to have a ripple effect on DOT’s price. Selling pressure is increasingly mounting up by the day due to heavy supply.
While the price decreased by 13% in the past week, it has recovered by 1.4% in the past hours. This recovery is not strong enough, but more action is likely if the buyers react to the current weekly low price of $5.5.
Failure to recover higher may lead to another drawdown, which is capable of causing a devastating decline below the $5 price level – this could inject serious pain.
With the current market condition, holders are much more likely to offload their bags on spot should DOT continues to show signs of weakness. On the other hand, futures traders will be more convinced to add more positions to their shorts with the provided selling opportunity.
The 4-hour chart shows that the price is overstretched, although it may soon reach an extremely oversold level if selling volume keeps trooping into the market. For now, it is calmly trading at around $5.7.
However, the downward slope reveals a continuous increase in supply with no signs of reversal. The recurring sell-off shows that the bears have gained a strong dominance.
Polkadot’s Key Levels To Watch
Buying in this case will result in a loss for spot traders. Meanwhile, futures traders will be looking for short positions. The support levels to watch for take profit are $5.3, $4,72 and $ on a swing trade.
If it provides a buying opportunity above the current weekly low, the key resistance level to keep in mind is $6. Higher resistance levels are located at $6.4 and $6.87 for advancement.
Key Resistance Levels: $6, $6.4, $6.87
Key Support Levels: $5.3, $5, $4.72
- Spot Price: $5.7
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/polkadot-price-analysis-prediction-mar-14th-dot-trades-at-support-following-serious-crackdown-loses-14-in-a-month/