Polkadot bulls fail to hold on to $6.92 as support, what can come next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Since early January, Polkadot has performed bullishly on the price charts. This was a trend seen across the altcoin market, so DOT was no exception. Like the rest of the market, Polkadot has also run into strong bearish pressure over the past few days.
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The strong rally from $6 earlier this month saw most of the gains retraced over the past week. The psychological round number at $6 coincided with a bullish order block on the daily timeframe, highlighted in cyan.
It was likely that Polkadot would drop beneath $6.5 in the coming days and possibly as low as $6.
Source: DOT/USDT on TradingView
The daily chart showed that although bearish pressure has been significant in the past week, bulls can look to bid at the $6 area. The mid-February rally from $6 had been strong and breached $7 with ease, and reached $7.9 on 19 February.
Since then, the prices have slumped to trade at $6.57 at press time. This amounted to losses of 16.6% within the space of a week. Analysis of lower timeframe charts such as the 4-hour showed the bears were firmly in the driving seat.
The price had left an H4 imbalance in the $6.9-7.15 zone. Although there was a bounce from $6.9 on 22 February, it was not enough to break past $7.36. Now, DOT sat atop another support at $6.48, with $6.3 and $6 as further support levels to the south.
How much are 1, 10, and 100 DOT worth today?
The Awesome Oscillator was above the zero line but made red bars on the histogram to show the bulls were weakening in the past week. The CMF was at +0.08, which showed significant
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