This week has been painful period for many DOT holders as it witnessed another dramatic fall to a three-week low yesterday. It has recovered briefly but still looks weak daily as it brews for a bigger sell-off. 

Altcoins are seriously falling out again as the primary cryptocurrency short-lived its recovery this week, making another sharp downturn to form a bearish (double-top) pattern on the daily chart.

DOT reacted negatively to the move and the price nosedived on Tuesday to a low of $6.4 yesterday. It has recovered briefly from that low and now trades at round $6.6, gathering momentum for another leg down.

No doubt that the bears have now regained dominance, but it is noteworthy to say there is still hope for a rebound as the bull cycle is not over yet sentimentally. Aside from that, their footprints are still evident in the market from a technical standpoint.

Psychologically, the dump looks much more like a market manipulation, which is providing more discount for buying in the near term. If supply level increases, things may get uglier in the next few days while the bears claim more lows.

The main target level for such a sell is $4, where it started to surge last November. A further drop below this level will put the market in a more bearish condition. Traders and investors are currently pessimistic of current move as it maintained a lower low and lower high pattern.

Source: Tradingview

Advancing bearishness in the next few days, DOT may reclaim the last month’s $6 support level with a potential break down to $5.55 and $4.7 in the future.

A reestablished support above that last month’s support could bring a recovery in the market. But for now, the immediate resistance level is located at $8, followed by $9.67 and $11.65 in case of a major buyback.

Key Resistance Levels: $8, $9.67, $11.65

Key Support Levels: $6, $5.55, $4.7

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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