Polkadot (DOT) is currently displaying bearish signs as it struggles to break above the $8 resistance level against the US Dollar. Failure to maintain support above $6.00 could result in a further decline in price. The cryptocurrency is facing significant obstacles below the $8.80 and $8.00 levels as it trades below $7.20 and the 100 simple moving average (4 hours). A key bearish trend line has formed with resistance at $6.50 on the 4-hour chart of the DOT/USD pair, indicating a challenging path ahead for Polkadot.
Despite a steady increase, DOT price experienced resistance near the $7.60 zone before encountering a decline below $7.00, similar to other major cryptocurrencies like Ethereum and Bitcoin. The drop below the $6.20 support level led to a low at $6.03, followed by a consolidation phase. Currently, the price is gradually moving upwards above $6.35 and the 23.6% Fib retracement level. However, it remains below $7.00 and the 100 simple moving average, posing obstacles for a potential rally.
The immediate resistance for Polkadot is near $6.50, with further barriers at $7.00 and the 61.8% Fib retracement level. A successful breakthrough above $7.00 could trigger a strong rally towards $8.20 and eventually $10.00. On the flip side, failure to establish an uptrend could lead to a continuation of the downtrend. The key support levels to watch are $6.00, $5.65, and $5.00, with further downside potential towards $4.20 in case of sustained losses.
The MACD for DOT/USD is currently losing momentum in the bearish zone, reflecting the prevailing selling pressure. Additionally, the RSI for DOT/USD is below the 50 level, indicating a bearish sentiment among traders. Traders and investors should carefully monitor these indicators to assess the market conditions and make informed decisions.
Polkadot (DOT) is facing significant resistance levels and bearish signals that could lead to a further price decline if not overcome. Traders should exercise caution and conduct thorough research before making any investment decisions, as the cryptocurrency market carries inherent risks. While there is potential for a bullish reversal with a breakthrough above key resistance levels, the current outlook for Polkadot remains bearish and challenging in the short term.