Polkadot has extended losses by 33% over the last two weeks, due to which its 4-hour MACD languished at a near 6-month low. Meanwhile, short-mid term moving average lines have failed to offer any pushbacks after DOT weakened below a long serving upper trendline .
Should a recovering RSI now falter around the mid-line, DOT’s next point of contact would be between $35-$33.2 support, from where the introduction of new longs could trigger a much-needed comeback. At the time of writing, DOT traded at $39.8, down by 0.66% over the last 24 hours.
Polkadot 4-hour Chart
Source: DOT/USD, TradingView
Bears have been relentless in the DOT market and a number of support levels have succumbed over the past two weeks. Since flipping its bottom trendline on 11 November, DOT maintained its southbound trajectory and slipped below the 200% and 161.8% Fibonacci levels.
While DOT did show some signs of life at the 138.2% Fibonacci area, a host of uncertainties were still present along the RSI and Awesome Oscillator. Should broader market corrections continue to dictate DOT’s movement, the next contact would be made at a support line of $35.27 and the 100% Fibonacci level at $33.1. A deeper support area at $28.5 could be called into action if selling pressure does not fizzle out over the coming days.
According to the Visible Range profile, DOT could see an extended shuffle between $33-$35 as buyers and sellers fight for market control. Once new longs outmaneuver sell pressure, expect DOT to climb back above the highlighted Fibonacci areas and carve a path towards the 400% Fibonacci Extension.
Reasoning
Although DOT’s 4-hour RSI did reverse from oversold levels, the index still traded in bearish territory and lent support to sellers. The MACD did not show any reliable signs of a reversal after slipping to a near 6-month low. On the other hand, a possible triple bottom setup on the Awesome Oscillator did induce some optimism but not before a few more losses grip the market.
Conclusion
Polkadot could extend losses towards the 100% Fibonacci level due to weak positions on the RSI, MACD and Awesome Oscillator. From there, expect DOT to trade sideways between $33-$35 before reversing trajectory.
