Polkadot (DOT) Falls to Lowest Weekly Close Since 2020
Polkadot (DOT) recently experienced a significant breakdown as it fell below the crucial $4.20 support level, marking its lowest weekly close since 2020. This decline has raised concerns among investors and analysts alike.
DOT has been following a bearish trajectory since reaching its yearly high of $7.90 in February 2023. It slid below the $4.20 support level, which had held since the beginning of the year. Such breakdowns from long-standing support levels often trigger substantial declines.
The conjunction of this support area and a descending resistance line has formed a descending triangle, a bearish pattern that underscores the breakdown and hints at the possibility of further losses.
Potential scenarios
If the downtrend persists, DOT's price could potentially drop by another 50%, reaching the $2 horizontal support area, aligning with its all-time lows from August 2020.
However, if DOT manages to reclaim the $4.20 area and break free from the descending resistance line, it could trigger an impressive 85% price surge toward the $7.50 resistance area.
The weekly Ultimate Oscillator, a momentum indicator used to determine overbought or oversold conditions, supports the prevailing downtrend, with readings below 50 and a declining trend considered bearish signals.
Bottom Line: Despite the bearish predictions for DOT, a potential breakout from the channel and the $4.40 area could pave the way for an 85% surge toward the $7.50 resistance region.
DOT has been following a bearish trajectory since reaching its yearly high of $7.90 in February 2023. It slid below the $4.20 support level, which had held since the beginning of the year. Such breakdowns from long-standing support levels often trigger substantial declines.
The conjunction of this support area and a descending resistance line has formed a descending triangle, a bearish pattern that underscores the breakdown and hints at the possibility of further losses.
Potential scenarios
If the downtrend persists, DOT's price could potentially drop by another 50%, reaching the $2 horizontal support area, aligning with its all-time lows from August 2020.
However, if DOT manages to reclaim the $4.20 area and break free from the descending resistance line, it could trigger an impressive 85% price surge toward the $7.50 resistance area.
The weekly Ultimate Oscillator, a momentum indicator used to determine overbought or oversold conditions, supports the prevailing downtrend, with readings below 50 and a declining trend considered bearish signals.
Bottom Line: Despite the bearish predictions for DOT, a potential breakout from the channel and the $4.40 area could pave the way for an 85% surge toward the $7.50 resistance region.
The best cryptocurrency automated trading platform.
-Cryptohopper-
cryptohopper.com/
-Cryptohopper-
cryptohopper.com/
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.