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Technical Analysis for DOTUSD for 24th April 2023

Polkadot Drops 15%, DOT's 4 Month Rally Ending?

Past Performance of DOT

The contraction of Bitcoin had a profound effect on altcoins, including Polkadot. The coin is underperforming at spot rates, sliding 15% from recent peaks. Even so, buyers remain in control from an effort-versus-results perspective, looking at the general performance in the daily chart.

Polkadot Technical Analysis

The bearish engulfing bar of April 19 is with expanding volumes, thrusting bears in control. Since there was a follow-through and bears remain in control even at spot rates, traders can search for entries to sell. The immediate support line is $5.7, marking last week's highs. Meanwhile, resistance is at $6.1 and April highs, respectively. Losses below the previous week's lows with high participation levels may see DOT crumble to $5.2, the March 2023 lows; flashing with the 78.6% Fibonacci retracement line of the Q1 2023 trade range.

What to Expect from DOT

DOT buyers have a chance despite the recent drawdown. Any recovery pushing the price above $6.1 may spur activity, helping lift prices above $6.8 in a bullish continuation formation. Conversely, sharp liquidation may unwind gains, triggering a sell-off.

Resistance level to watch: $6.1

Support level to watch: $5.7

Disclaimer: Opinions expressed are not investment advice. Do your research.

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