Polkadot struggles to recover as price stays below key levels
Polkadot (CRPTO:DOT) is facing challenges as it remains below $5.00 against the US Dollar, struggling to gain traction.
According to current market data, the cryptocurrency must move above the resistance levels of $4.35 and $4.50 to signal a potential recovery.
DOT has steadily declined from its recent highs above $6.50, falling below key levels of $5.50 and $5.00.
While Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) have maintained some stability, Polkadot has continued to lag.
The price recently fell to a low of $4.03 before attempting a recovery.
There was a minor upward move above the $4.10 and $4.15 resistance levels, climbing past the 23.6% Fibonacci retracement level of the downward move from $4.65 to $4.03.
According to the DOT/USD chart, there was a break above a connecting bearish trend line with resistance at $4.18.
However, the price remains below the $4.50 zone and the 100-hour simple moving average.
Immediate resistance is near $4.30, with a significant barrier around $4.35, aligning with the 50% Fibonacci retracement level.
A successful break above this level could pave the way for a rally towards $4.50 and potentially higher, targeting the $5.00 zone.
According to analysts, if Polkadot fails to break above $4.35, it could face another downward move.
The initial support is near $4.15, followed by a more critical support level at $4.10.
A decline below this could lead to further losses, possibly driving the price down to the $4.00 level or even $3.85 and $3.60.
According to technical indicators, the hourly Moving Average Convergence Divergence (MACD) for DOT/USD is gaining momentum in the bullish zone.
Meanwhile, the Relative Strength Index (RSI) is positioned above the 50 level, suggesting potential for upward movement.
However, DOT needs to establish a base above its immediate resistance to confirm a strong recovery.
At the time of writing, the Polkadot (DOT) price was $4.26.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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