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Polkadot [DOT] hits March lows – Here are key levels to consider

2min Read

Polkadot [DOT] bears devalued the asset to the March low and bullish OB of $5.1. Will it offer steady ground for bulls?

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • DOT’s daily chart flashed bearish signs at press time 
  • However, trading volume surged, and the overall sentiment improved as of 8 May. 

Like the rest of the crypto market, Polkadot [DOT] saw considerable correction after Bitcoin [BTC] dropped to the $27k price range. DOT dropped from the $7 psychological level in April and hit the March low of $5.1 on 8 May – over 25% loss. 


Is your portfolio green? Check DOT Profit Calculator 


At press time, DOT traded at $5.386, lower than the daily session close on 8 May but higher than the lowest $5.170 on the same day. The lower candlestick wick formed after retesting the March low indicates bulls were keen to defend the support. Will they push forward? 

Will bulls find a reprieve at $5.15?

Source: DOT/USDT on TradingView

The plunge seen in the first half of March was stopped by the bullish order block (OB) formed on 13 March at $5.386 (white). At press time, DOT bears had breached the previous support zone of $5.60 – $5.87 (cyan), but the downtrend eased at the March low. 

Technical indicators didn’t show a reversal at press time. However, the Relative Strength Index (RSI) was near the oversold zone with a flat movement. It showed selling pressure increased but eased slightly at press time – will seller exhaustion give room for bulls?

Moreover, the Chaikin Money Flow (CMF) had an uptick – an indication of a slight improvement in capital inflows for DOT. If the trend persists, DOT could rebound from its March low ($5.15) and rally to the February support level of $6.05 or higher resistance levels at $6.6 or $7. 

If that’s the case, buying above bullish OB at $5.386, targeting $6.05, could offer a good risk ratio. Overly ambitious targets can be placed at $6.6 and $7. 

A daily session close below $5.15 will invalidate the thesis. Such a drop could push DOT to $4.997 or the December low of $0.4260. 

Trading volume and sentiment improved

Source: Santiment


How much are 1,10,100 DOTs worth today?


According to Santiment, DOT saw low trading volumes in the past few days. However, there was a slight improvement on 8 May after DOT retested the March low of $5.15. 

The move was accompanied by improved weighted sentiment, too – implying that bulls are keen to defend the March low. However, the fluctuating funding rates could undermine a strong recovery. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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