Polkadot [DOT] remains bearish – can bulls force a pullback
DOT has been on a downward spiral recently. However, a price reversal looks likely with bulls attempting a recovery of its YTD high.
Polkadot [DOT] began the year on a bullish note, posting gains of 84.7% to reach a YTD high of $7.9, as of 19 February. Since then, the price has almost wiped off those gains, with sellers dominating the market.
Selling pressure has been relentless with no pushback from bulls
DOT has been on a steep downward trend since 18 April. Price smashed through the $6.4 support level before bulls found some respite at the $5.7 support level.
However, this didn’t last long as sellers broke past the $5.7 support on 1 May. On the daily timeframe, sellers have maintained the pressure with price trading under the $5.7 area for three days.
While the overall structure for DOT remained bearish, a few signals point to a bullish pullback on the horizon.
On the four-hour chart, DOT posted three bullish candles in a row, causing the RSI to climb above the neutral 50 mark. The OBV also rose by 1.73 million.
A near-term recovery plan for bulls will involve a daily candle close above the $5.7 resistance level. This could spur a push to reclaim the $6.4 level. On the flip side, bears could continue the downward push with the $5 psychological support level as the next target.
Read More: https://ambcrypto.com/polkadot-dot-remains-bearish-can-bulls-force-a-pullback/
DOT has been on a downward spiral recently. However, a price reversal looks likely with bulls attempting a recovery of its YTD high.
Polkadot [DOT] began the year on a bullish note, posting gains of 84.7% to reach a YTD high of $7.9, as of 19 February. Since then, the price has almost wiped off those gains, with sellers dominating the market.
Selling pressure has been relentless with no pushback from bulls
DOT has been on a steep downward trend since 18 April. Price smashed through the $6.4 support level before bulls found some respite at the $5.7 support level.
However, this didn’t last long as sellers broke past the $5.7 support on 1 May. On the daily timeframe, sellers have maintained the pressure with price trading under the $5.7 area for three days.
While the overall structure for DOT remained bearish, a few signals point to a bullish pullback on the horizon.
On the four-hour chart, DOT posted three bullish candles in a row, causing the RSI to climb above the neutral 50 mark. The OBV also rose by 1.73 million.
A near-term recovery plan for bulls will involve a daily candle close above the $5.7 resistance level. This could spur a push to reclaim the $6.4 level. On the flip side, bears could continue the downward push with the $5 psychological support level as the next target.
Read More: https://ambcrypto.com/polkadot-dot-remains-bearish-can-bulls-force-a-pullback/
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