DOT Struggles to Find Support after Breakdown

Briefly-

  • Polkadot’s DOT trades over the $19 support.
  • The asset broker down from the near-term symmetrical triangle.
  • DOT-BTC hoovers over the 56k satoshis support.

DOT tries to maintain a long-term support level lying at $19.

At the moment, Polkadot indicates no bulls’ reversal signs. Moreover, DOT showed a more bearish outlook after breaking down from its earlier near-term pattern.

DOT Tries to Maintain Over the Support

DOT has been experiencing downfalls since achieving its record high of $49.78 in May.

The asset extended the downward trend until reaching a local low of around $13.73 on 23rd May.

However, the prices rebounded to reclaim the support area at $19. Nevertheless, DOT decreased below the support once more, with a possibility to rally down.

Technical indicators show increased bearish momentum. MACD sign line remains below 0, even with the increased strength shown by the histogram. Moreover, the stochastic oscillator crossed the bearish red icon, and the 50- line rejected the Relative Strength Index.

Regardless of such moves, the current drops appear as an A-B-C restorative structure, where waves A to C ratios at 1:1.61.

With that, you can conclude that a more bearish impulse would come. However, to recognize it, you may have to evaluate the low time-frames.

Near-term Movement

According to the 6-hour chart, DOT broke from the symmetrical triangle, validating the area as its resistance afterward.

For now, DOT’s potential level lies around $16.87, a .786 Fibonacci retracement level, and the descending channel’s support line.

If the altcoin fails to seek support at the zone, it might dip below the 23rd May drops and decline towards $8.

The TheEuroSniper crypto trader analyzed DOT’s price chart, saying that a close over $28 would translate to a bullish outlook. Although $28 is a reliable resistance area, DOT remains far from claiming the level.

DOT – BTC

Like the USD pair, DOT/BTC attempts to maintain over the 56K satoshis support zone.

The asset attempts to form a higher low after bouncing on 23rd May. However, daily technical indicators indicate a bearish market outlook.

If DOT manages to break down, it might have its next support at 44K satoshis.

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