Technical Analysis for DOTUSD for 7th March 2023
Polkadot Retests Base of Bull Flag, Will DOT Bounce from $5.8?
Past Performance of DOT
Polkadot Technical Analysis
From volume analysis, sellers have the upper hand if DOT is within the bear bars of March 3 and 4. The immediate resistance lies at $6.3, while prices must hoover above $5.8 for the uptrend to be valid. The support forms the base of the bull flag following the retracement from February highs at around $7.5. A follow-through confirming losses of early this month might see DOT drop to $5, the 78.6% Fibonacci retracement level of the December to February trade range. Conversely, only gains above $6.3 with rising participation levels might see DOT resume the uptrend, driving the coin back to $6.8 and $7.5, respectively.
What to Expect from DOT
DOT is at a critical reaction point as bears retest the base of the bull flag. Any recovery above March 3 highs would be a net positive. However, considering the over 85% from December lows, the odds of a cool-off are amplified. Technically, gains above February highs would invalidate this bearish preview, paving the way for bulls to take control.
Resistance level to watch: $6.3
Support level to watch: $5.8
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