- 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
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.
>> Buy Polkadot quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with DOT now. Visit Website <<
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.
Best Crypto Exchange for Everyone:
- Invest in Polkadot and 70+ cryptocurrencies and 3,000 other assets.
- 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
- Copy top-performing traders in real time, automatically.
- Regulated by financial authorities including FAC and FINRA.
2.8 Million Users
