Polkadot's token fell from $4.80 to lows of $4.25 as selling pressure dominated the market. DOT trades below established support and weakens across shorter timeframes. The broader cryptocurrency sello
Polkadot's token fell from $4.80 to lows of $4.25 as selling pressure dominated the market. DOT trades below established support and weakens across shorter timeframes. The broader cryptocurrency selloff compounds pressure on the sharded protocol's token.
The $4.44 weekly resistance has imposed a major obstacle for buyers. In the past 24 hours, bulls have tested this level without securing a break above. The level previously blocked the initial surge toward $4.80 and now constrains another bull attempt to move higher.
Bears have assumed control. They are rejecting purchases at the 50-day simple moving average on the 4-hour chart, which sits near $4.40. Should buyers lose their grip on this level, DOT faces a slide toward $4.00, with $3.75 as a further downside target.
For buyers to regain the upper hand, they must hold the $4.35 area and close within the $4.40 range. Success positions them to target $4.80 again and approach the psychological barrier at $5.00.
The technical indicators send a bearish message. The MACD shows downward pressure building. The RSI has declined alongside price action, reinforcing weakness on display.
One technical detail does favor bulls. A TD sequential has printed a red nine candlestick on the 4-hour chart, signaling that buyers have an entry point to reposition and push prices higher.
The token traded at $4.33 at the time of writing, down 3.95% for the day.
