Technical Analysis for DOTUSD for 4th July 2022
Polkadot Tethered at 2022 Lows, Will DOT Hold Above $6.40?
Past Performance of DOT
Polkadot remains under pressure at spot rates, as per the development in the daily chart. Even though buyers are optimistic about the project, expecting its value proposition to propel DOT higher, bears are firmly in control at spot rates. Currently, DOT is down 71 percent from April 2022 highs and hanging precariously at 2022 lows at $6.40. In the past 24 hours, DOT is stable but down 15 percent week-to-date versus the USDT. The slump points to strong liquidation pressure as the crypto market generally struggles against the wave of sellers.
Polkadot Technical Analysis
DOT is down double digits week-to-date and trending inside the July 1 trade range. The immediate support is at $6.40, while bulls have resistance at $7.20 and the middle BB on the upper side. Even though there are attempts at higher highs, given the slight divergence from the lower BB, bears are in command. Therefore, aggressive traders can unload on every opportunity higher towards $7.20. Meanwhile, deeper losses below last week's lows at $6.40 may force DOT towards H2 2021 lows at $4.40, or worse, in a bear continuation pattern. Conversely, there will be hope for bulls if there is a solid break above the middle BB at the back of rising trading volumes at around $7.50. In that case, prices could recover to $8.50 and later $10.5.
What to Expect from DOT
Sellers are firmly in charge, and there is no clear indicator pointing to bottoms. Therefore, bears may continue to unload, targeting a retest of H2 2021 lows. Still, on the brighter side, a close above the dynamic resistance line, that is, the middle BB, may anchor the next leg up towards $8.5 in the short term.
Resistance level to watch: $7.20
Support level to watch: $6.40
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