DOT recovery becomes an uphill battle while overhead pressure mo
Polkadot hits a snag under $35, abandoning the upswing to highs past $40.
DOT seeks support at the 50 SMA on the 4-hour chart while trying to avert declines under $30.
Polkadot had staged an impressive recovery on Monday, extending the bullish leg from the recently formed support at $27. The token hit highs above $30 and pushed for gains beyond $35. However, bulls lost steam within a whisker of a confluence resistance created by the 100 Simple Moving Average (SMA) and the 200 SMA on the 4-hour chart.
The mission to achieve a new record high beyond $40 seems to be a pipedream at the time of writing due to increased resistance beneath the confluence level. DOT seeks higher support at the 50 Simple Moving Average (SMA). If this immediate anchor fails to hold, we can expect DOT to tumble further and perhaps retest $30.
The Moving Average Convergence Divergence (MACD) indicator had flipped massively bullish from last week. However, the indicator’s upward momentum has dramatically reduced. At the time of writing, the MACD line prints a horizontal trend, implying that the slightest resistance path is sideways.
On the other hand, traders should be on the lookout for the MACD’s return into the positive region. Besides, if the MACD line (blue) crosses under the signal line, massive sell orders are likely triggered. Another dip below $30 may not stop at $27 but could extend the bearish leg beneath $20.
On the upside, holding the support at the 50 SMA on the 4-hour chart will ensure market stability. Bulls will then have the time to focus on rebuilding the uptrend toward $40. Another bullish signal would be settling above the confluence resistance at $35.
Polkadot intraday levels
Spot rate: $33.6
Trend: Bearish
Volatility: Low
Support: 50 SMA on the 4-hour chart, $30 and $27
Resistance: $35 and $40
