Polkadot DOT Drops 5% Amid Failed Breakout and Selling Pressure
Polkadot (DOT) faced significant selling pressure, dropping 5% before rebounding. Technical analysis indicates a potential double bottom pattern, suggesting possible upward movement.
Key points:
- DOT peaked at $3.787 but encountered resistance, forming a bearish reversal pattern.
- Current trading price is around $3.63, having found support at $3.59.
- The CoinDesk 20 index decreased by 0.5% at the same time.
- During the last 24 hours, DOT displayed volatility with a range of $0.193 (5.1%).
- Strong support emerged at $3.594; however, there are downside risks as momentum indicators weaken.
- A V-shaped recovery occurred after dipping to $3.594, pushing DOT back to $3.642.
- If DOT maintains support above $3.62, further price increases may be possible.