- Polkadot price reveals a technical breakdown since Wednesday’s peak.
- DOT primed for another leg lower each time lower support does not hold.
- Expect to see a 15% slide back to the low of March.
Polkadot (DOT) price is on the verge of sinking another 15% while it has already slid 15%. The decline comes after the peak on Wednesday was followed by a technical rejection and a string of breakdowns in support levels. Traders need to monitor this pattern in the coming sessions to time when the bearish powers are outplayed and a bullish upswing re-emerges.
Polkadot price has feeble support levels
Polkadot price peaked near $7.00 on Wednesday before it started to tank quite severely after it got a firm rejection at that level. Price action tanked toward $6.23 where a pivotal level and the 55-day Simple Moving Average (SMA) came in for support. What followed was first a test and a small bounce with the second test breaking substantially below the same support.
DOT sees the same pattern emerging on Friday with a break on the monthly pivot. DOT is bound for a firm break below it as the rebound is losing force quickly. Expect DOT to collapse to $5.74 and next starts to paint a similar pattern again in that area. If that level breaks as well, $5.31 appears to be the last man standing in order to at least halt this sell-off with a full 30% decline from top to bottom.
DOT/USD 4H-chart
Just below the monthly pivot, the 200-day SMA can be found and could prove to be the joker for bulls in this sell-off. The Relative Strength Index (RSI) is already firmly oversold and could see bears fading by now with little incentive to push further. A quick pop higher above $6.23 would be a good closing position to end the week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.