Technical Analysis for DOTUSD for 1st March 2022
Polkadot Boxed Within a $5 Zone After a 70% Dive
Past Performance of DOT
Technically, sellers have the upper hand. DOTUSDT prices are within a descending channel, down over 70 percent from Q4 2021 peaks. This would be the state of affairs unless there is a strong close above the descending channel with increasing trading volumes. Currently, DOT prices have support at the double bottoms marked by $15 and resistance at $20 and later $23.
Polkadot Technical Analysis
The path of least resistance is southwards despite the general optimism and confidence in a market recovery. DOT prices are wavy above the $15 support line and capped below the $20 psychological liquidation line. At spot rates, aggressive traders may find entries to dump on a pullback towards $20. However, considering the DOTUSDT candlestick arrangement, the safe move is to wait for a clean surge above $20 and $23 before loading the dip. A surge past $20 would increase the odds of a retest of $27 in the medium term. On the flip side, a dump below $15 could trigger a damaging sell-off towards $10—June 2021 lows, continuing the trend defined from early November 2021.
What to Expect of DOT
Polkadot is a solid project backed by favorable technical formations—at least from a top-down preview—and fundamental factors. In the medium term, DOT could demand a next leg up above critical resistance levels as the network continues building.
Resistance level to watch: $20
Support level to watch: $15
Disclaimer: Opinions expressed are not investment advice. Do your research.
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