Polkadot (DOT) Price Rejected by Long-Term Resistance, Will It Continue to Fall?
The Polkadot (DOT) price has been rejected by long-term resistance and created a bearish pattern. It is likely to continue to adjust in the near future.
The Polkadot (DOT) price has dropped after being rejected by the long-term resistance zone at $9.5 in the last week of 2023. In the following week, DOT created a large bearish candle, confirming the formation of an evening star pattern (red ellipse). This is a bearish pattern that often appears at the end of a price increase.
Indeed, the candle last week was a candle with a long upper wick, confirming strong selling pressure at higher levels.
The weekly RSI indicator has broken down below the recent bottom and is sloping downwards, indicating that the bull camp is gradually losing control.
Therefore, the DOT price is likely to continue to adjust to the important support zone at $5.8, formed by the previous horizontal resistance zone and the 0.618 Fibonacci retracement support level.
Breaking the important EMA line
The daily chart shows that the DOT price has broken down below the 20-day EMA line, which has provided support for the price throughout the uptrend (blue arrows).
On January 11, DOT created a lower high (red arrow), confirming a short-term bearish structure.
The daily RSI indicator has cut down below the 50 level and is sloping downwards, indicating that the bear camp has regained control.
Therefore, the DOT price may drop to the support zone of $6.5 in the coming days.
The most likely prospect shows that the DOT price will continue to adjust in the near future. The nearest target is $6.5 and lower to $5.8.
The bearish view will be invalidated when the DOT price breaks above the recent top at $8.6 on the daily timeframe.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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