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Price Analysis

Polkadot Traders Cautious as Trading Volumes Plunge, DOT/USDT Resistance at $20

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Whats next for Polkadot COVER

The future of blockchain is about efficiency and speed.

In the quest to eliminate barriers and connect various siloed blockchain protocols, Polkadot is ahead of the curve and is one of the most valuable projects in the space.

Not surprisingly, traders keep a close eye on the performance of its native currency, DOT—which in all honesty has been quite dismal in the recent past.

As of writing, DOT prices are steady on the last trading day on dropping trading volumes—at around $795 million, as per CMC’s data.

Polkadot Market Performance

Amid the optimism, there is concern that bears are not yet done with their “rectification,” and more draw-down could be on the way.

Still, there is a hint of bear exhaustion reading from price action in the daily chart.

Polkadot Price Daily Chart for July 8

A glimpse of DOT/USDT price action could suggest strength. If anything, DOT prices are in a tight $7 zone with identifiable caps at $17 and $10 though gains have been short-lived.

However, from a volatility perspective, there is hope.

For instance, DOT prices are inching higher relative to the lower BB. At the same time, BB gaps appear to the narrowing indicating the possibility of traders keeping their cards close to their chest.

At the moment, the main resistance trend line is the middle BB. This strong, flexible liquidation line has successfully clipped bulls’ momentum as per price action in the daily chart.

From mid-May 2021, DOT bulls haven’t closed above the liquidation line as DOT prices cratered from $40 to as low as $12 in H1 2021.

DOT/USDT Resistance at $20, Polkadot “Cheap” at spot Prices

In the 4HR chart of the DOT/USDT, one trader on Twitter observes that bulls are in contention, and $20 is the immediate resistance line.

The analyst notes that DOT/USDT candlestick structure indicates compression and a bullish twist on ribbons pointing to shifting momentum. He further added that the last time this printed, DOT prices rallied.

It is along the same vein that another trader notes of DOT/USDT series of higher highs.

In the 4HR chart, prices are in an ascending channel. Encouragingly, prices now found support at the primary support trend line at the back of decent trading volumes.

If Polkadot rebuff selling pressure and the main support buying zone remain valid, the odds of DOT breaking above the immediate resistance level at $20 are high. This will undoubtedly revive participation, pumping bulls.

Another trader thinks Polkadot is cheap at spot rates and will accumulate even though DOT/USDT prices are in range and may even fall to $10.

In his view, Polkadot is a good project—considering creators’ sense of details and vision of bringing together all the current high-value but disparate blockchains.

Therefore, there could be a buying opportunity with every dip, especially once DOT edges past $20.

Polkadot Has Strong Support at the $12-$15 zone

In the 4HR chart, a trader on YouTube, Clever Crypto, says Polkadot prices have strong at the primary support trend line and moving inside an ascending triangle.

He predicts DOT to break higher towards and above $20.

On the flip side, it could be worse if DOT prices drop below the support trend line—in the 4HR chart—placing bears at the fore, targeting $10—H1 2021 lows.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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