The Polkadot (DOT) price has recently faced significant selling pressure, having fallen below an important support level at $7 on Friday.
The current week sees DOT remain bearish, with sellers firmly in control and DOT hovering at a crucial support level that could dictate future price movements.
Will Polkadot (DOT) Continue Bearish Streak?
Polkadot (DOT) has been consistently unsuccessful in surpassing key resistance levels. DOT has faced rejection twice at the $7.50-$7.60 level and at the $7.20 level, leading to a significant decline due to increasing selling pressure as bearish sentiment gained momentum. DOT had a positive start to the previous week after dropping to $6.98 last Sunday. DOT reversed this bearish trend and rose to $7.23 by Wednesday. However, with the 20-day SMA acting as resistance at this level, DOT could not sustain its bullish momentum and fell back in the red on Thursday, dropping to $7.13, a fall of 1.57%.
Friday saw selling pressure intensify as DOT dropped by nearly 7%, slipping below $7 and dropping to $6.65. The bearish sentiment persisted into the weekend, with DOT dropping by 4.04% on Saturday and settling at $6.38. Sunday saw a marginal recovery, with DOT rising to $6.52. However, DOT started the current week back in the red after a highly volatile session that saw DOT settle marginally lower. The current session sees DOT down by over 2% as sellers look to push DOT below a crucial support level. Whether DOT does fail to stay above this level remains to be seen.
Will Polkadot (DOT) Recover Or Continue Drop?
Looking at the Polkadot price chart, we see DOT faces resistance at the $7, $7.20, and $7.50 zones. Currently, DOT is near its support zone of $6.40, a level that has held on several previous occasions. This is because strong demand counteracts the selling pressure, preventing the price from dropping further. However, should this level of support be breached this time around, we could see bearish sentiment continue, with DOT potentially dropping to $6.
Source: TradingView
Polkadot (DOT) is currently in a phase of slight consolidation, indicating the price could potentially stabilize. If DOT manages to recover, we could see an increase to $7 and $7.20. Should it get past these levels, the next level of resistance is in the $7.50-$7.60 zone, which is where the 200-day SMA is also present. For sustained bullish momentum to build, DOT must reclaim these levels. Technical indicators such as the MACD also reflect the current bearish sentiment in the market, having flipped to bearish.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
