Polkadot (DOT) is showing bearish signs below the $8 resistance level against the US dollar. If the price fails to stay above $6.00, the decline could be prolonged.
- DOT is pacing below the $8.80 and $8.00 levels against the US dollar.
- The price is trading below the $7.20 area and the 100 simple moving average (4-hours).
- On the 4-hours chart of the DOT/USD pair, there is a major bearish trend line forming at resistance $6.50 (data source from Kraken).
- The pair may continue to decline towards the $5.00 support zone.
Polkadot price decline resumes
After a steady rise, DOT price faced resistance near $7.60. It formed a short-term high and, like Ethereum and Bitcoin, began a new decline below the $7.00 level.
There was a move below the $6.20 support zone. A low was formed near $6.03 and the price is currently consolidating losses. It is slowly rising above the $6.35 level and the 23.6% Fib retracement level moving down from the $7.58 swing high to the $6.03 low.
DOT is currently trading below the $7.00 area and the 100 simple moving average (4-hours). Immediate resistance is near the $6.50 level. Additionally, there is a major bearish trendline forming resistance at $6.50 on the 4-hours chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com
The next major resistance is the 61.8% Fib retracement level near $7.00 or a downside move from the $7.58 swing high to the $6.03 low. A successful break above $7.00 could start another strong rally. If stated, the price could easily rise to $8.20 in the short term. The next major resistance appears near the $10.00 area.
Are there any more downsides to DOT?
If DOT price fails to initiate a new rally above $7.00, it may continue to decline. The first major support is near the $6.00 level.
The next major support is near the $5.65 level, below which the price may fall towards $5.00. Any more losses could open the door for a move towards the $4.20 support or trendline.
technical indicators
4-Hour MACD – The MACD for DOT/USD is now losing momentum in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level.
Key support levels – $6.00, $5.65 and $5.00.
Key resistance levels – $6.50, $7.00, $8.50.
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Source: NewsBTC.com