Bull Trap May Drag DOT Price To $7.3 Mark

The ongoing correction plunged the Polkadot(DOT) price to the $7.35 mark, tagging along the descending trendline. Furthermore, a reversion from this support with a morning star candle prompts an occasional pullback for the DOT price. however, recovery rally couldn’t sustain above the $10.5 mark triggers a resistance fakeout.

Key points:

• The DOT price is approaching the overhead trendline.
• The 20 DMA aligned with the dynamics resistance trendline.
• The 24-hour trading volume in the Polkadot coin is $855 Million, indicating a 13% gain.

Source-Tradingview

The Polkadot(DOT) price action witnessed a range-bound throughout the last four months, hovering between $23.45 and $15.90. However, following the breakdown of the range support, the price sank 68% to $7.35.

Furthermore, the coin has used the $7.35 levels as support over the last week and is now steadily making its way towards the dynamic overhead trendline. This steady move has recovered close to 43% of the DOT’s price from $7.35 to $10.55.

However, despite the attention of the buyers and the minor loss recovered in the last few days, the DOT buyers failed to sustain above the $10 mark. Today, the altcoin is down by 10% on the intraday level and pierced the $10 mark, reflecting a support fakeout.

If the coin submits to the downward pressure, the DOT price will sink back to $7.35. The likely reversal would threaten to cause a bearish breakdown.

An unexpected rise in bullish momentum may undermine the dynamics’ resistance and trigger a new recovery rally.

Technical Analysis

The MACD indicator’s failed attempt for a bullish crossover between the MACD and signal line bolsters the bearish thesis to revisit the $7.5mark.

The 20 DMA carrying the ongoing correction puts constant selling pressure on the DOT. Moreover, a bearish alignment among the crucial DMAs suggests multiple resistance above.

• Resistance levels- $10.3 and $17.5
• Support levels- $7.3 and $6

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.