- DOT was down by over 13% in the last seven days.
- If a bull rally happens, DOT might face resistance near $8.8.
Polkadot [DOT] recently failed to test a support level as its price plummeted below that. The incident triggered yet another bear rally, causing DOT to shed a substantial amount of its market capitalization.
However, things can take a U-turn as another bull pattern appeared on DOT’s chart.
Polkadot remains bearish
AMBCrypto reported a few days ago that it was crucial for Polkadot to test its support near $9.2 in order to initiate a bull rally.
The token failed to test that and kept losing value. According to CoinMarketCap, DOT was down by more than 13% in the last seven days. In the last 24 hours alone, its value plummeted by over 2%.
At the time of writing, it was trading at $8.28 with a market cap of over $11.8 billion.
However, investors must not get disheartened, as there were chances of DOT turning bullish.
FLASH, a popular crypto analyst, recently posted a tweet highlighting a bull pattern on DOT’s chart. Earlier, when this pattern formed, DOT’s price went up considerably.
But, it should be noted that DOT’s price was still moving inside the pattern, meaning that it could shed a bit more value before breaking out and beginning a bull rally.
As per the analysis, the chances of DOT touching $7.9 were high prior to a breakout above the resistance.
DOT to touch $7.9?
Since there was a possibility of DOT plummeting further, AMBCrypto checked its derivatives market metrics. Our analysis of Coinglass’s data revealed that DOT’s open interest continued to rise while its price dropped.
Whenever the metric rises, it indicates the chances of the on-going price trend continuing further, hinting at a price decline. Additionally, the token’s funding rate also dropped in the last few days.
Source: Coinglass
The token’s MACD supported the sellers as it displayed a bearish advantage. The Relative Strength Index (RSI) registered a downtick, further suggesting a price decline.
Nonetheless, the Money Flow Index (MFI) looked somewhat bullish as it took a northward path.
Source: TradingView
Read Polkadot’s [DOT] Price Prediction 2024-25
If the MFI is to be believed and DOT actually managed to begin a bull rally sooner than expected, it might face hindrance at quite a few levels above.
An analysis of Hyblock Capital’s data pointed out that DOT will witness a hike in liquidation near $8.8. Therefore, if DOT has to sustain a bull rally, the first step must be to go above the resistance level in the coming days.
Source: Hyblock Capital
