The Polkadot (DOT) price has been on a downward trajectory for a fair amount of time. However, it has found strong and consistent support at $6.40 during this time, indicating that the price may have bottomed.
DOT saw a significant increase on Wednesday and Thursday, which saw the price surpass the 20-day SMA and the 200-day SMA.
Polkadot (DOT) Rebounds From Support Level
Since it hit its yearly high on the 14th of March, DOT has registered a drop of over 40% and is some way off from those heady highs. Since then, DOT slid from $11.55 to $8.77 by the 19th of March, dropping below the 20-day SMA. A recovery saw DOT rise to $9.14, but thanks to the 20-day SMA, the price dropped to $8.43 by the 3rd of April. After yet another brief recovery, DOT dropped considerably on the 12th and 13th of April, falling by 13.48% and 11.72%, respectively. This saw the price go below the 200-day SMA, dropping to $6.40.
This was where DOT found strong support, allowing the price to rebound. DOT was back above the 200-day SMA by the 22nd of April, rising to $7.47. However, the 20-day SMA was acting as resistance at this point, and DOT fell back below the 200-day SMA, dropping to $6.73 by Sunday. The current week saw DOT continue in the red, dropping by 2.23% on Monday and 2.43% on Tuesday, ending the session at $6.42. As mentioned earlier, this is a very strong level of support, and DOT rebounded on Wednesday, rising by 7.48% to $6.80, testing the resistance at $7. Thursday saw buyers continue to push DOT higher, with the price registering an increase of 5.65%, going above the 20-day SMA and the 200-day SMA to settle at $7.29.
Currently, DOT is trading at $7.17, just above the 200-day SMA, as buyers and sellers look to take control of the session.
Does Double Bottom Pattern Indicate A Revival
Looking at the Polkadot (DOT) price chart, we see some interesting things. The DOT price chart shows a descending triangle between the 15th of March and the 11th of April, indicating that sellers are in control. DOT then created a double bottom pattern on the 30th of April, indicating the price had bottomed. So, where does DOT go from here? Currently, DOT is trading between the $7.10 and $7.20 mark, with the 200-day SMA currently at $7.19. If DOT cannot stay above the 200-day SMA, we could see DOT drop to $7, where the 20-day SMA could act as support. Should sellers breach this level, DOT could drop back to its support level of $6.40.
Any upward price movement depends on DOT’s ability to maintain its position above the 200-day SMA. If this happens, DOT could test the $8 price level, where the 50-day SMA could act as a strong resistance level.
What The Indicators Are Saying
Looking at the indicators, the MACD is currently bullish, indicating a bullish sentiment and supporting the possibility of a longer price revival. The RSI is currently firmly in the neutral zone, indicating DOT has room for a further price increase.
Additionally, the recent DOT price decline saw a number of long positions liquidated, leading to the OI-Weighted Funding Rates registering a considerable decline. The drop in funding rates and DOT’s price consolidation support indicate that the price may have bottomed, and we could see an increase in the value of DOT.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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