Polkadot (DOT) It had recently started to experience a price correction, but this correction took longer than expected and Polkadot lost almost half of its price. With this decline, the DOT bears also managed to retake the 200 EMA line and brought the price down to the 0.618 Fibonacci retracement level.
Important Technical Points
- DOT price continues to decline below the 200-day EMA.
- DOT The intraday trading volume in the price was around $1.49 billion, with a 17.32% decrease compared to the previous day.
DOT/USD chart was last trying to stay above 0.5 FIB. However, giving a minor pullback to the upside, the DOT had started to pull back a bit, but this correction lasted quite a long time and caused the 200 EMA to be broken as well.
For now, the price has dropped to the 0.618 FIB level, showing several low price rejection candles at this level, reflecting the presence of heavy demand pressure.
The key EMA levels (20, 50, 100 and 200) point to a bearish outlook for the DOT as the price is trading below the trend defining the 100 and 200 EMA. Also, the Relative Strength Index (33) has reached the oversold region, allowing ample room for potential growth.
DOT/USD 4-Hour Time Chart
If the DOT is to start an uptrend, it must first face the 200 EMA resistance. Therefore, traders can consider the area between $33.6 and $26.5 as the no-trade zone.
Once the price breaks out of either of these levels, these traders will have a better idea of the price’s next course.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.