DOT facing new rise or further sell-off?

Polkadot (DOT) failed to break through the resistance at the red line located at $4.915 in its last upward attempt, thereby failing to exit the downtrend. The price then experienced a strong sell-off at this price level and is now back below the 50 Daily EMA, almost at the initial level before the rise. If Bitcoin continues to fall, this will also pull DOT lower into the blue support box between $3.95 and $3.85. If this area also fails to hold, DOT could gradually decline to $3.59, especially if Bitcoin sells off sharply.

Looking upwards, the volume indicator VPVR, which shows the volume traded in a certain period of time, shows that the 50 Daily EMA could be approached if the level at $4.2 is recaptured and the yellow line no longer acts as resistance above the price lay. In the best case scenario, a stronger upward move will occur if DOT trades back above the 50 Daily EMA and breaks the descending white line. The next significant resistance is expected in the price range of $5 to $5.5.

DOT daily chart and heatmap (Source: TradingView)

4-hour chart: Will support hold or will DOT continue to fall?

Currently, the green support line is holding well at $3,992 and DOT has not yet closed a 4-hour candle below this level. For the next increase, DOT needs to break through the 50 EMA on the 4-hour chart and establish it as new support to overcome further resistance. The RSI is at 38 points, which is relatively low, but still has room to reach the neutral zone around 50 points.

Learn crypto trading in the video course

In the BTC-ECHO Academy, Bastian (Bitbull) explains to you what is important in crypto trading and which strategies he uses to be successful.

Take a look now

While the MACD suggests that the strong negative momentum is starting to fade, there is still a lack of sufficient movement as the MACD remains flat.

The liquidation level image (top right of the chart) also shows that there are currently no major leveraged positions under DOT.

DOT 4-hour chart with indicators and liquidation levels (Source: TradingView)

About the author

Bastian Keller (Bitbull) has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 60,000 subscribers. Bitbull also has the platform TradeMania launched to make it easier for beginners to start crypto trading.

This might also interest you

source site-52