- The Polkadot price drops up to 15% during Tuesday’s trading session.
- Over 50% of the drop has been recovered, but whether the bounce is a fake out remains to be seen.
- The upside may be limited in the meantime.
The polkadot price, like the rest of the cryptocurrency market, saw a big drop. Despite a 10% rebound from the daily low, Polkadot’s closing price is still below the daily opening price.
Polkadot price faces uncertain trend direction; Traders digest the recent sell-off
The Polkadot Prize is in a position it hasn’t been in since late September. It is currently between a combination of resistance with Tenkan-sen and Kijun-sen in the USD 46 area and a support area at the top of the Ichimoku cloud at USD 38.
The upside is likely to be limited to the Tenkan-Sen and Kijun-Sen. With polkadot price returning to test these levels as resistance, traders should watch any breakout that would bring polkadot back to a closing price above the Tenkan-sen and Kijun-sen. A bullish continuation move would likely occur if the bull rally hit Polkadot to close above $ 48.
While Polkadot price found responsive buys against the top of the cloud (Senkou Span A) at $ 38, another primary level of support remains that bulls may want to test. The $ 35.50 area contains two of the strongest support levels on Polkadot’s chart: the 2021 Volume Point Of Control and Senkou Span B.
The oscillators show that there are some oversold conditions. The Optex bands have an almost vertical slope and push deep into the oversold area. Additionally, the Composite Index is at historical support levels and the Relative Strength Index is at the last oversold support level at 40.
DOT / USDT weekly Ichimoku chart
Bulls should look for a strong close at or above $ 48 while bears should look for a tight Senkou Span B at $ 37.
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