This month’s crackdown has subjected DOT to a serious loss, but it appeared to have taken a breath amid the current market recovery. It is climbing back but buying pressure seems low at the moment.
Dot’s overall market outlook remains bearish on a long-term scale. But it seemed to be footing a bullish move as the price traded well above the key $3.5 level since August.
However, the price is still trapped in a tight range since it was subjected to a sideways trend months back. While gathering momentum for a big move, the trend is likely to change anytime soon.
Meanwhile, during last month’s increase, it attempted a break out of its range-bound but after rejecting the descending trendline that served as resistance for six months.
This led to a monthly crackdown and the price rolled back into the $3.9 range this week. It has increased briefly from this low range level to where it is currently priced at around $4.1. We can expect more increase if this low range holds firmly.
An increase above this resistance line should confirm a breakout before rallying up. From a technical standpoint, the market is still in favour of the bears. A drop below August’s low could facilitate another dip.
DOT’s Key Levels To Watch
Source: Tradingview
As buying pressure is still low, the closest level to watch for an increase is $4.5, where the resistance line lies. If the price flips through it, the next level for a test is $5, $6 and $6.6 respectively.
If the bears step back, a pull below the $4 support could facilitate more dip to the $3.59 level (August’s low) before navigating $3.
Key Resistance Levels: $5, $6, $6.6
Key Support Levels: $4, $3.59, $3
Spot Price: $4.15
Trend: Bearish
Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: valedol/123RF // Image Effects by Colorcinch