Polkadot (DOT) Trade Analysis and StrategyPolkadot (DOT) has encountered difficulties in reclaiming the critical $7.5 resistance region, which aligns with the 200-day moving average at $7.4. The current bullish momentum appears insufficient, suggesting a possible short-term consolidation near this pivotal level. A detailed examination of Polkadot’s daily chart reveals that after a resurgence of demand near the $6.5 support level, the asset experienced a bullish surge. This movement brought DOT to a critical resistance zone defined by the 200-day moving average and the static level at $7.5.
Breaking out from this key price range could attract more demand, leading to a sustained bullish movement. However, the current price action around the $7.5 mark indicates fading bullish momentum. Buyers are facing significant challenges pushing the price beyond this resistance. Therefore, a sideways consolidation or slight rejections are likely before the next decisive move.
In this scenario, the $6.4 level will be the primary support in the mid-term. Should DOT retrace to this level, it will be crucial to observe the market's response. A strong rebound from this support could renew bullish efforts to break the $7.5 resistance. Conversely, a failure to hold the $6.4 support could lead to further declines, necessitating a reassessment of the asset's short-term outlook. As the market navigates this critical juncture, traders should monitor these levels closely and adjust their strategies accordingly.
