Declining trendline Prevents DOT Price Recovery

A descending trendline carrying the ongoing correction plunged the Polkadot(DOT) price to $7.3. However, the coin price reverted from this support with a morning star candle, prompting an occasional pullback. 

Key points:

• The DOT price approaching the overhead trendline
• The 20 DMA aligned with the dynamics resistance trendline
• The 24-hour trading volume in the Polkadot coin is $1.8 Billion, indicating a 10% loss.

Source-Tradingview

During the last four months, the Polkadot(DOT) price witnessed a range-bound rally, resonating between the $23.5 and $16 mark. However, a recent reversal from the range resistance responded to the descending trendline and tumbled 32.5% down to $16.

Moreover, last week’s sell-off in the crypto market accelerated the selling pressure and slumped the DOT price below $16. As a result, the downfall tumbled the altcoin by another 48% and plunged it to $7.3 support.

Furthermore, a low volume reversal from this support indicates a minor relief rally which would soon continue the prevailing downtrend. The DOT price currently trades at $11.05, with an intraday gain of 26.8%.

If buyers continue to push higher, the altcoin will retest the overhead resistance trendline to replenish the selling momentum. The possible reversal would revisit the $7.3 support and threaten a bearish breakdown.

Conversely, a sudden rise in bullish momentum could breach the resistance trendline to kickstart a new recovery rally.

Technical Analysis

The MACD slope shows a sudden rise and reduces its gap with the signal line. These lines nearing a bullish crossover could bolster buyers to breach the overhead trendline.

However, a recent negative crossover between the 50-and-100-day DMA completes a bearish alignment between the 20, 50, 100, and 200 DMAs. Moreover, the coin price trading below these DMAs, indicates the path to least resistance is downward.

• Resistance levels- $14.2, and $17
• Support levels- $10.2 and $7.3

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.