- In the absence of a reversal from the key EMAs and the breakdown in the pattern, the bears appeared to be firmly on top.
- Watch the range between $3.79 – $4 in the near future.
Polkadot [DOT] After breaking out of its recent bearish pattern, the chart confirmed its downward trend.
The price had been struggling to break through the 50-day Exponential Moving Average during recent rallies. This level has proven to be a major resistance.
DOT was trading at $4.19 as of the writing. This is a decrease of nearly 0.5% over the past 24 hours. DOT’s price showed that it was facing significant negative pressure. The key resistance levels were the 20-day EMA $4.45, 50-day EMA $5.91, and 200 day EMA $6.11.
A pattern of breakdown was triggered by DOT Bears
Source: TradingView Dollar/Dot
DOT’s daily chart shows that it recently broke out of a flag pattern which indicates continued downward movement. The 20-day and the 50-day EMAs have not been reclaimed by the price, which further confirms that the market is currently bearish.
If the bears do not break through this support, a possible reversal may occur. If this level of support does not hold, DOT may be headed to even lower levels and could revisit the $3.6 area.
The key levels of concern are:Assistance levels at $4.45 (20 day EMA), 4.91 (50 day EMA), and $5. Support levels are important to watch when it comes to the market. 3.99 $ and 3.5
A breakdown below $4.0 would accelerate the downward momentum of DOT, pushing it towards $3.79. Reclaiming the 50 day EMA may signal the beginning of a new phase. However, this is less likely due to the current bearish mood.
Should BTC’s sentiment improve, DOT may retest their 50 EMA following a gain of nearly 17% from press-time levels.
Moving Average Convergence Divergence indicator (MACD), with its MACD line slightly below the Signal line, is bearish. The MACD line is currently below the signal line, indicating that a bearish trend remains intact. Further downside pressure can be expected until a bullish cross-over occurs.
Data on Derivates gives hope to bulls
Coinglass
In the derivatives marketplace, traders showed a small bullish tendency with a long/short of 1.0239. Binance’s long/short for the DOT/USDT pair is especially high, at 4,2854. This shows a large number of positions in favor of shorts.
You can read more about it here Polkadot [DOT] Price Prediction 2024-2025
The overall market mood appears to be cautious. Total open interest increased by 0.45%, reaching $184.80M, despite the 21.52% decline in volume.
Traders are advised to keep a close eye on MACD and market sentiment for potential crossovers, especially Bitcoin’s prices, as these could affect DOT’s course.
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Source: ambcrypto.com
