Polkadot (DOT) is currently displaying bearish signals below the $8 resistance level against the US Dollar. The price is at risk of further decline if it is unable to maintain a position above $6.00. DOT has been steadily moving downward below the $8.80 and $8.00 thresholds against the USD. It is also trading under the $7.20 region and the 100 simple moving average (4 hours). There is notable resistance at $6.50, marked by a key bearish trend line on the 4-hour DOT/USD chart sourced from Kraken. Consequently, the pair might continue its descent towards the $5.00 support area.
DOT encountered resistance near the $7.60 level after a period of consistent growth and subsequently began a fresh decline below $7.00. This descent pushed the price beneath the $6.20 support level, ultimately bottoming out near $6.03 before entering a consolidation phase. Though it has since seen a slight uptick above $6.35 and the 23.6% Fib retracement level, DOT remains under $7.00 and the 100 simple moving average (4 hours). Immediate resistance is anticipated near $6.50, along with the aforementioned bearish trend line.
The next significant barrier for DOT stands at $7.00 or the 61.8% Fib retracement level following the drop from $7.58 to $6.03. A successful break above $7.00 could signal a strong rally towards $8.20 in the short term. However, failure to surpass this level may result in a continued downward trajectory. Key support is initially located at $6.00, followed by $5.65, with a potential decline to $5.00 in the absence of substantial price recovery. Further losses could precipitate a move towards $4.20 or the established trend line.
When analyzing the 4-Hour MACD for DOT/USD, it is evident that momentum is waning within the bearish zone. Additionally, the 4-Hour RSI for DOT/USD has fallen below the 50 level, indicating a negative market sentiment. Major support levels to monitor include $6.00, $5.65, and $5.00, with corresponding resistance levels at $6.50, $7.00, and $8.50.
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