Since mid-May, DOT / USD has produced a bearish path and is now testing significant medium-term support levels.
After reaching a record value of nearly 50.0000 on the 15e in May, the DOT / USD lost more than half of its value. As of this writing, DOT / USD is near the 22.5000 junction with significant medium term support levels clearly in sight. The vast cryptocurrency market suffered from strong bearish momentum. Polkadot is not alone as he has seen his value plunge, and many speculators can remain bullish with their long-term outlook. However, short-term perceptions and long-term perspectives can often have two different perspectives.
Technical traders will need to look at six month charts to get a more in-depth perspective on the current value of DOT / USD. The proximity to current Polkadot prices has the cryptocurrency trading close to the values last seen in a large transactional fashion on the 10the from February. Support around the 21.5000 to 21.0000 junctions could prove to be a major inflection point if bearish sentiment remains prevalent in the vast cryptocurrency market.
Over the weekend, the DOT / USD dipped to a value slightly below the 15.0000 mark, but it was a momentary drop. DOT / USD rallied and traded near a high slightly above 24.0000 early in today, but has since reversed lower. The passage to the lower depths of the Polkadot value displayed on the 23rd of May touched levels seen in the last week of January. The question is whether this bearish peak is a signal for things to come.
DOT / USD needs to overcome its current short term resistance levels near the 24.5000 level and hold higher values to erase some of the bearish sentiment that is now overshadowing. If the DOT / USD is unable to trade above this near-term level and continues to decline near the 22,5000 price, it is possible that speculators suspect that more bearish activity may be occurring. Cautious sellers with a downside outlook may want to wait for slight upside reversals within Polkadot to initiate short positions and aim for support as a profit-taking plan.
DOT / USD is nearing significant resistance in the medium term, and if the overall sentiment in cryptocurrencies remains nervous, it could trigger more technical sells for the digital currency. Trading conditions were certainly brisk last week, and speculators should anticipate further turbulent price action. Selling DOT / USD and aiming for support levels can be a solid short-term speculative bet.
Short-term outlook for Polkadot:
Current Resistance: 24.5000
Current support: 21.3700
High target: 27.4000
Low target: 18.3000