Polkadot extended its downside actions beneath its 4-month trend-line resistance. The ongoing structure met immediate grounds around the $6.45 mark. A bounce-back from a long-term foothold might position DOT for revivals in the near term.
As the long-term market outlook revealed sellers’ preference, Polkadot needed to conquer the 20 Exponential Moving Average to catalyze massive comeback chances. While writing these lines, DOT changed hands near $6.40, dropping more than 1% over the last 24 hours.
Polkadot Daily Timeframe
The latest liquidations dragged Polkadot towards 17-month lows on June 13, following a more than 66% slump in 51 days. The buying momentum somewhat noted upswings after the bearish run with a bullish hammer.
Nevertheless, the 20 Exponential Moving Average and the trend-line resistance visibly kept buying rallies under their check. Meanwhile, the current candle closing beyond the nearest support would confirm the probability of short-term revival on the Polkadot chart.
The alternative token lost approximately 10% after breaching its latest bearish flag, nearing the baseline at $6.4. Investors should consider a closing above the $6.45 – $6.5 value area to test the buying momentum’s effectiveness. Such cases would have possible targets around the $7 mark near the 20 Exponential Moving Average.
Also read:A failure to close above this range might trigger undesired price plunges for DOT in the upcoming sessions. Any drop beneath the $6.4 level would expose the alt to an additional 8-10% slump.
Reasoning
The Relative Strength Index dipped into the bearish region after endeavoring to overcome the midline limitations. Buyers should secure a spot beyond the midline to shift this narrative. Nevertheless, the A/D (Accumulation/Distribution) witnessed higher highs within the past two weeks and confirmed a bullish divergence with DOT price. Meanwhile, the ADX depicted substantial weak directional biases for the alternative token.
Final Thought
Considering the $6.45 immediate support and the A/D bullish divergence, Polkadot might witness a short-term recovery before resorting to its bearish path. The price targets would stay as highlighted above. Lastly, investors should evaluate broad market sentiments to ensure a lucrative move.
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