Technical Analysis for DOTUSD for 9th December 2021
Polkadot Bounces 20% from Recent Lows, Will DOT Bulls Clear $33?
Past Performance of DOT
The Polkadot coin is stable after last week's double-digit losses.
As expected, the pause is only natural but doesn't necessarily translate to the end of the bear run.
Instead, it may offer more aggressive DOT traders entries, especially if sellers continue to cap prices below $33 and $40—immediate resistance levels.
What to Expect of DOT
When writing, DOT is stable above $25—last week's lows.
However, the failure of Polkadot bulls to confirm gains of December 7 may point to hesitation among traders.
For now, the immediate support is at $33—the December 4 high—and $40 to the upside. A close above this resistance level would quickly shift price action to favor buyers.
If not, and sellers flow back, reversing the progress of early this week, the next immediate support will be at $25.
Polkadot Technical Analysis
DOTUSDT price action has corrected the undervaluation of December 5 and 6—bear bars closing below the lower BB.
Although there has been no confirmation of the December 7 pullback, traders are hopeful. Technically, resilience among buyers and rejection of lower lows towards $25 could indicate strength.
However, for the risk-averse, better opportunities may exist above $33—December 4 highs, canceling bears from an Effort-versus-Results perspective.
In that case, every dip may be an opportunity to load up targeting $40—a round number and previous support, now resistance. On the other hand, if sellers unwind gains on December 7, DOTUSDT may retest $25, continuing selling pressure traced to mid-November 2021.
Resistance level to watch: $33
Support level to watch: $25
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