Technical Analysis for DOTUSD for 7th December 2022
Polkadot Sellers in a Commanding Position, will DOT Break Above $5.8?
Past Performance of DOT
The general trajectory of DOT is southwards. Despite attempts higher in the second half of November, bulls are yet to follow through, confirming the upside. Thus far, sellers are in a commanding position with the path of least resistance defined. Though prices are stable, even printing higher, participation levels are comparatively low, questioning the resilience and conviction of traders.
Polkadot Technical Analysis
Polkadot traders appear hesitant. Of note, prices are still being shaped by the bearish engulfing bars of early November. As it is, DOT has support at around $5. There were higher highs in late November and early December. However, it appears bulls couldn't sustain the move higher. This means the immediate resistance and buy trigger is around $5.80, or last week's highs. For DOT buyers to take control, a move above this line could see the coin rise to retest $7.45—or November lows. All the same, price action favors sellers. Therefore, aggressive traders can unload the coin, targeting $5. Further losses could see DOT drop to $4.50.
What to Expect from DOT
The Polkadot ecosystem is growing, overly bullish for DOT, which is the network's utility coin. Price charts point to general weakness and the continuation of a trend of the past year. Gains above last week's highs could relieve traders angling to retest November highs or post better results in Q4 2022.
Resistance level to watch: $5.80
Support level to watch: $5
Disclaimer: Opinions expressed are not investment advice. Do your research.
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