HomeNewsPolkadot in Turmoil: $5.23 Support Crumbles Under Bearish Onslaught

Polkadot in Turmoil: $5.23 Support Crumbles Under Bearish Onslaught

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  • Polkadot’s crucial $5.23 support level crumbles amidst bearish market sentiment.
  • Bitcoin’s dip below the $29k mark intensifies the bearish momentum, pushing Polkadot into a precarious position.

Polkadot Under Siege: Bear Market Gains Ground

Polkadot [DOT] sellers capitalized on the prevailing bearish mood, managing to rupture the $5.23 support level, a significant stronghold for the cryptocurrency. This rift in the market equilibrium came into effect as both buyers and sellers found themselves engaged in a standoff between the bearish order block and the previously solid support level.

Bitcoin’s [BTC] plunge below the $29k price point emboldened bearish forces, flipping the $5.23 level to a newfound resistance. The critical question now is: will this incite a counteraction from the bulls?

Resistance at Bearish Order Block Stifles Bulls

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Bulls faced stiff resistance at the bearish order block (OB) set between $5.6 to $5.9. This resistance, a significant obstacle for the bullish rebound from the June low of $4.24, resulted in a recent price rejection at the bearish OB, pushing DOT to the once-solid support level.

Signs of wavering confidence among buyers, along with a sharp dip in the Relative Strength Index (RSI) over the past three days, indicated ebbing buying pressure. Likewise, the Moving Average Convergence Divergence (MACD) lingered under the zero mark, echoing the bearish crossover.

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Bulls find a flicker of hope in the $4.8 to $5 price zone. However, if bears charge past this bastion, their gains could extend to the lows of $4.2 to $4.5.

The Future Market Reflects a Seller’s Game

The future market’s landscape highlighted the growing dominance of sellers. Exchange long/short data from Coinglass on the four-hour timeframe revealed a 52.5% swing towards sellers, suggesting a bearish market outlook.

In this increasingly precarious situation, it appears likely that bears could clear the $5 hurdle with the price action leaning heavily in their favor. As Polkadot navigates these turbulent waters, market participants will closely monitor the unfolding scenario, searching for potential signs of a bullish resurgence.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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