- Polkadot price broke under a vital support trend-line, thus risks a 19% plunge.
- The Layer1 crypto aims to try critical support levels vulnerability before market players can expect a recovery.
- The altcoin has to hold beyond $32 to avoid further plunges.
Polkadot has witnessed muted price actions as the alternative coin failed to attract investors’ attention. The Layer1 token extends its downtrends, registering lower highs and lower lows. The primary technical pattern indicates that DOT can touch $27 if it fails to keep a vital support level.
DOT Price to Test Support Reliability
The daily chart shows Polkadot slicing beneath an ascending parallel channel’s bottom boundary, confirming a bearish outlook for the alternative coin. Polkadot might suffer more plummets as market players continue booking their profits.
Polkadot has its first defense line at 50% retracement zone at $32.74, then the 200-day SMA near $28.82, acting as a massive foothold since it corresponds with the Momentum Reversal Indicator’s support line.
If the support line mentioned above fails to serve as a dependable defense for DOT, the altcoin might decline further. That can see it hitting the bearish aim given by the primary technical formation at $27.46. Remember, the 61.8% FIB retracement level sits at this level.
Meanwhile, reduced selling pressure can incentivize bulls to push DOT price high towards the initial resistance level at 100-day Simple Moving Average at $37.11. Magnified buy orders might witness Polkadot tagging 38.2% FIB retracement at $38.02.
Buyers have to target the parallel channel’s lower boundary at $40.58 to prevent more losses. Nevertheless, DOT might encounter additional obstacles at 21-day Simple Moving Average at $42.1, then 50-day Simple Moving Average near $43.68.
If bulls step up to reverse the underperformances by Polkadot, overcoming the hurdles highlighted above, the altcoin might target the governing technical pattern’s middle boundary at $54.20. The level sits near Polkadot’s all-time high and the resistance by the Momentum Reversal Indicator.
Meanwhile, the global market appears shaky at the moment. That is due to the new coronavirus strains that can trigger global lockdowns. The news threatened market players avoid riskier assets, translating to a crypto market fall. Such developments can support the downswing target by DOT. However, stay tuned for upcoming crypto news.