Polkadot price at risk of a meltdown if DOT bulls are unable to unchain themselves

Polkadot (DOT) price is set to close out the week with a solid gain, although it has undergone some retreat near and over the weekend. Although this is a welcome result for traders, it does not mean anything in the overall bear market cycle. As the current week was unable to close above the high of last week, it was also unable to close above an important technical handle that would at least be favorable for more profits to come in the coming weeks.

DOT price is still under pressure from last week’s rejection

Polkadot price analyzed on a broader timeframe shows a logic as to why this bullish candle is just a mere drop on a hot plate as the bear cycle is still very much intact. Last week bulls underwent a steadfast rejection after trying to break above the 55-day Simple Moving Average (SMA), around $7.75, followed by DOT price trading lower. The close this week bears some profit but unfortunately was unable to break above the high of last week and that 55- day SMA hurdle. 

DOT price is thus going nowhere and, after this small effort for a bounce, will only go further south. Polkadot price will see bulls being squeezed against that support level at $6.92 before that level will break. With the start of a new month, fresh pivots are plotted on the chart, and the monthly S1 falls perfectly in line with the low of 2022 at $6. If that level does not hold, the monthly S2 at $5 could be the one to watch.

DOT/USD Weekly chart

The bounce could see some continuation into next week and might rather see bears being squeezed against the 55-day SMA. Once broken, expect to see a massive inflow of bulls with a steep rally. Expect DOT price action to rally to $10 and print a new high since June.