#Polkadot Drops 15%, DOT's 4 Month Rally Ending?
Past Performance of Polkadot
The contraction of Bitcoin had a profound effect on altcoins, including Polkadot. The coin is underperforming at spot rates, sliding 15% from recent peaks. Even so, buyers remain in control from an effort-versus-results perspective, looking at the general performance in the daily chart.
#Polkadot Technical Analysis
The bearish engulfing bar of April 19 is with expanding volumes, thrusting bears in control. Since there was a follow-through and bears remain in control even at spot rates, traders can search for entries to sell. The immediate support line is $5.7, marking last week's highs. Meanwhile, resistance is at $6.1 and April highs, respectively. Losses below the previous week's lows with high participation levels may see DOT crumble to $5.2, the March 2023 lows; flashing with the 78.6% Fibonacci retracement line of the Q1 2023 trade range.
What to Expect from #DOT?
DOT buyers have a chance despite the recent drawdown. Any recovery pushing the price above $6.1 may spur activity, helping lift prices above $6.8 in a bullish continuation formation. Conversely, sharp liquidation may unwind gains, triggering a sell-off.
Resistance level to watch out for: $6.1
Support level to watch out for: $5.7
Disclaimer: Opinions expressed are not investment advice. Do your research.
The contraction of Bitcoin had a profound effect on altcoins, including Polkadot. The coin is underperforming at spot rates, sliding 15% from recent peaks. Even so, buyers remain in control from an effort-versus-results perspective, looking at the general performance in the daily chart.
#Polkadot Technical Analysis
The bearish engulfing bar of April 19 is with expanding volumes, thrusting bears in control. Since there was a follow-through and bears remain in control even at spot rates, traders can search for entries to sell. The immediate support line is $5.7, marking last week's highs. Meanwhile, resistance is at $6.1 and April highs, respectively. Losses below the previous week's lows with high participation levels may see DOT crumble to $5.2, the March 2023 lows; flashing with the 78.6% Fibonacci retracement line of the Q1 2023 trade range.
What to Expect from #DOT?
DOT buyers have a chance despite the recent drawdown. Any recovery pushing the price above $6.1 may spur activity, helping lift prices above $6.8 in a bullish continuation formation. Conversely, sharp liquidation may unwind gains, triggering a sell-off.
Resistance level to watch out for: $6.1
Support level to watch out for: $5.7
Disclaimer: Opinions expressed are not investment advice. Do your research.
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