DOT/USD has continued to fall and is traversing extremely important support levels in early trading this morning as buyers seem to have disappeared.
DOT/USD is trading near the 9.7000 price as of this writing. DOT/USD was trading near the 10.7500 mark as late as the 23rd of May, this after climbing back from a low of 9.1600 seen on the 19th of May. On the 12th of May DOT/USD did trade below the 7.0000 level temporarily. While optimists, if any are left, may proclaim the ability of Polkadot to climb higher off of these lows was an accomplishment, even they might not proclaim it a victory.
DOT/USD remains locked in an aggressive long term bearish trend. Let’s please recall in late October of 2021 DOT/USD was trading near the 55.0000 level. The fall from these apex highs mirrors the results of the major cryptocurrency market, and it also reflects the seemingly dubious fact that speculative buyers are in very short supply.
DOT/USD is traversing values today, which were last traded in January of 2021. Technically this is significant because it shows DOT/USD is trading below the over exuberant prices which started to develop in earnest around the middle of January in 2021, when prices in the digital asset sphere started to launch upwards across the board. In early February of 2021 DOT/USD was trading near the 20.0000 mark. If prices continue to slump and additional ‘supposedly’ support levels crumble, if would not be utterly shocking to see DOT/USD trade near the 6.0000 mark again and potentially even lower.
While backers of Polkadot may say its current price is vastly oversold, the lack of buyers able to produce a significant reversal higher is troubling. If speculative buyers do not show an appetite for DOT/USD there is reason to suspect the cryptocurrency could falter more. A low of around 9.5000 was demonstrated early this morning and if this level erodes, technically traders should begin to think about important psychological marks if lower prices are sustained. This means numbers like 9, 8 and 7 could be considered in USD values.
Speculators should remain cautious and realistic about their ambitions. The price velocity of DOT/USD has not been ultra-powerful, but its inability to trade over the 10.0000 ratio could prove significant if this value starts to look like it will not be flirted with in the short term. Traders need to use solid risk management as sellers, and make sure they use entry price orders to meet expectations via their fills. Looking for more downside action with DOT/USD appears to be the logical wager near term.
Current Resistance: 10.3400
Current Support: 9.5300
High Target: 11.2600
Low Target: 7.9800