Crypto Prices: Polkadot (DOT) Holds On Support But Suffers From Bearish Pressure

By September 16, 2022Polkadot
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Polkadot (DOT) quotes made a sharp change of direction to the downside against the US dollar (USD), hitting lows of 6.91 today.

The former main support level that we had indicated with the analysis of 13/09 last at 7.04 / 7.08 was therefore violated, and this requires us to review all the technical references to ascertain whether the conditions for new recoveries shortly.

As we write, it is 20.14 CET on Thursday 15 September and Polkadot is changed hands on the main exchanges at 6.97 dollars, slightly recovering from the lows of the day, but still in negative territory (-3.06%).

DOT Still Above The Support That Matters

The first important data can be easily obtained from the analysis of the daily bar chart, where we can see how the lows of last September 7 at 6.76 have held up so far.

This is a significant level for the short term (= next 3-5 days) as it is placed on a sort of technical watershed, the point from which buyers had triggered a mini-rally that actually lasted less than four days this month. , but which had in any case exceeded 20% of extension. It is therefore possible that the buyers are again lurking in the vicinity of the level, and that at least temporary reactions may spring from it again, in the short term.

However, if we move to the 30-minute chart, we can realize how the sellers are gradually gaining strength at this moment, so much so that the main resistance that keeps the bearish picture active is now placed below – and no longer in correspondence – of the recent highs. relating to 8.12.

The fact that the resistance is lowering implies that sell orders are placed lower and lower; in other words, those who already own DOT for having purchased between the end of August and the beginning of September, are now content to sell it at progressively lower prices in order to get rid of the position. Further resistance is positioned at 7.27 / 7.30.

Both will be potential points to restart the decline in the event of recoveries. Expectations are for a breakout of the intermediate support area between 6.76 / 6.84, in favor of a dip to 6.22 (target).

The scenario would be canceled by the eventual break of the second resistance, through a close on the 30-minute chart above 7.83.

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