Polkadot bulls nowhere to be found as DOT price prepares to shed 10%
- Polkadot is under pressure from global markets turmoil.
- DOT price saw bulls fleeing the scene after a firm bearish rejection of the upside.
- With bulls not present, expect the price to fall back to the low of this week for a test, shedding 10% of its value.
This Friday, the Polkadot (DOT) price looks heavy after bulls got rejected from further upside on the monthly S1 support. With that rejection, the price is now being returned to the downside and looks to slip below $16.95 anytime now as pressure is mounting further on bulls to forfeit their positions. Expect this correction to pick up speed towards the US session and see a test of the low of this week at $16.00, in the process losing 10% of its value.
Polkadot awaits more tailwinds for the return to $25.00
Polkadot price looked set for a solid bullish uptick in challenging markets, but the breakout failed and bounced off the monthly S1 support level around $20.50. With that, bulls started selling their positions on the way back and the muted price action yesterday looks set for bears to go in for the kill and push bulls against the $16.95 barrier to squeeze them out. If the morale of bulls gets broken today, expect to see a break below that orange support line in search for a test of this week's low, around $16.00.
DOT price should, however, see its losses contained around that level as currently US futures, with the Nasdaq upfront, are quoting in the green and look to stem in favor of risk-on assets. This should see some broad interest from investors and bulls and match further selling pressure. So, all in all, any sell-off should be contained and refrain from further downside, but the upside will be limited as well as $16.95 will become resistant to the upside, keeping DOT price stuck between these levels.
DOT/USD daily chart
As sentiment could still favor more upside with the Nasdaq holding green numbers on the board, DOT price could pop back up towards $20.00 or $20.51, the levels with the monthly S1 support level and a historically significant level that has been pivotal in the past. In the spillover of the tailwinds from the Nasdaq, expect sentiment to lift further going into the Friday close and could bring a break above $20.51. Next week, that would set the scene for another leg up towards $25.19.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
