Polkadot price: bearish outlook as DOT nears key support zone

2023-9-1 17:45

Polkadot’s native token DOT has traded mostly lower since peaking around $7.89 in February. Now bulls find themselves once again near a key horizontal support zone, a likely scenario given price is currently printing a second red candle on the daily chart as sellers eye break to $4.40.

If DOT breaks lower, buyers might have to dig deeper to defend the $4.30 area as was the case in mid-June following the SEC-induced crypto sell-off.

DOT price outlook

As can be seen on the chart below, DOT currently hovers around $4.46. However, it appears sellers have a slight upper hand with the rejection near $5.00 likely to strengthen with another negative flip on the daily time frame.

Polkadot price on daily chart. Source: TradingView

The horizontal line has held strongly before, but can bulls keep it that way? Recent news for Polkadot haven’t helped buyers as such.

Against the bullish case is the descending triangle pattern that presents a strong bearish bias and the shape of the 100 SMA that adds to the potential for a downside break.

The daily RSI also suggests a bearish outlook after flipping off the 50 mark. If a bullish divergence fails to materialize, DOT could extend beyond the ascending triangle’s support line. In this case, bears could target price levels towards $3.55 – which are areas last traded at in August 2020.

On the upside, a breakout to the triangle pattern’s resistance line could see bulls aim for support above $5.50. Beyond this, momentum could push DOT/USD to the long-term demand/supply reload area of $7.00.

The post Polkadot price: bearish outlook as DOT nears key support zone appeared first on Invezz.

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