Polkadot Price Approaches Long-Term Support
The Polkadot (DOT) price is currently approaching a long-term support level at $4.30 after breaking down from a short-term support area. The reaction at this level will determine the future trend of the price.
- The $4.30 support area has been in place for nearly 1,100 days, making it a crucial level to watch.
- A breakdown could result in a 56% drop to the all-time low at $2.
- On the other hand, a bounce from the support area could lead to a 60% upward movement to $7.70.
- The weekly RSI indicates a bearish reading, suggesting a potential breakdown.
- The RSI is below 50 and falling, indicating a bearish trend.
DOT Price Prediction: Rejection Leads to Drop
The daily timeframe analysis supports a bearish outlook for the DOT price.
- The breakdown below the $4.80 support area and subsequent rejection indicate a bearish trend.
- The $4.80 area is a crucial level as it serves as both a horizontal support area and the 0.618 Fib retracement support level.
- The daily RSI is decreasing and below 50, further confirming the bearish trend.
Hot Take
The Polkadot (DOT) price is currently at a critical point, approaching a long-term support level. The technical indicators suggest a bearish outlook, with the possibility of a breakdown and a decrease to the $4.30 support area. However, if the price manages to reclaim the $4.80 level and break out from the descending resistance line, we could see a bullish movement towards the next resistance at $5.50.
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