The Polkadot has posted notable growth this month and has similarly broken out of a descending channel that has had seven months of price action. increase.
It looks like the long-awaited correction is on its way following the recent massive drop across the crypto market.
Less than a month into the new year, Polkadot’s price jumped more than 60% to a multi-month high of $6.84. It rejected that level and yesterday fell just below last week’s support of $6.
It has recovered slightly and is currently trading near the aforementioned support levels. The previous daily candlestick represents the large losses that have occurred since the start of the month. Today, as sellers fill more positions and sales volumes increase, the picture can grow.
However, the positive sentiment of the past few weeks comes to a halt as the bearish scenario kicks in. Currently, the only conditions for a bullish continuation are buybacks and breakouts of previous highs.
If not, we could see a massive sell-off in the next few hours as today’s monthly trading round-up.
The market has shown a sustained recovery throughout the month, and we can expect more as soon as the cryptocurrency finds solid support levels for a rebound.
Important Polkadot levels to watch out for
After the price crossed the $6.3 hour support and slumped to a low of $6 during yesterday’s drawdown, the DOT rejected that level and looked for a supply level to start another legdown.
Considerable support levels are $5.68 and $5 to retest the channel resistance. Apart from these supports, the $4.6 and $4.23 levels should be kept in mind next.
In the event of a buyback and breakout above $6.66, the forward-looking resistance is at $7.4 and could be $8 in the future.
Main resistance levels: $6.66, $7.4, $8
Primary support levels: $5.68, $5, $4.6
- Spot price: $6.2
- tendency: strong
- Volatility: moderate
Disclosure: This is not trading or investment advice. Always do your research before buying cryptocurrencies or investing in projects.
image source: skorzewiak/123 RF // image effects by color cinch
