The post Polkadot (DOT) Faces Bearish Pressure as Price Struggles Below Key $7 Resistance appeared on BitcoinEthereumNews.com.

The cryptocurrency Polkadot (DOT) is facing significant challenges, finding itself unable to break past the crucial $7 resistance mark. Technicals like the Ichimoku Cloud paired with the double-top pattern hint at a possible continuation of bearish behavior. Recent social metrics indicate a notable increase in trader attention, possibly heralding upcoming price volatility. Discover the intricate movements within Polkadot’s price action, highlighting key resistance and support levels, and what these mean for future trends. Polkadot Struggles to Surmount the $7 Resistance Polkadot (DOT) is experiencing substantial bearish pressure, struggling to overcome the $7 resistance level. In the past two weeks, DOT’s price oscillated between a peak of $7.25 and a trough of $6.16. Technical Indicators Signal Continued Downtrend Currently, DOT’s price has declined to around $6.2, sparking investor apprehensions regarding further drops. The price is trading below the Ichimoku Cloud, a clear indication of a bearish trend. Moreover, the conversion line (blue) and baseline (red) are situated above the market price, further solidifying the bears’ hold on DOT. Potential Signs of Oversold Conditions According to the Bollinger Bands, DOT hovers near the lower band area, suggesting it might be oversold in the short term. Should buying pressure return, a temporary price rebound or lateral consolidation may occur. Still, the moving averages indicate a downward trend with the price trailing below both short and long-term averages. Critical Price Levels to Watch The $6.20 support level emerges as a pivotal point. If DOT maintains this, there might be potential for a northward move, particularly if it can surpass the minor resistance at $6.30. Conversely, if bearish sentiment persists, failing to hold $6.20 could see DOT testing lower supports, possibly around $6.16 or even $6.00. Implications of the Double-Top Pattern Visible on the charts is a double-top pattern around $6.60, where the price was…

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Filed under: News - @ June 16, 2024 6:10 am