- DOT coin price has been falling from the past couple of trading days as it goes below the previous low.
- DOT coin price is retracing the previous low as it depicts a strong bearish grip.
- As of now, the pair of DOT/BTC is trading at $0.0002244 with a decrease of -2.48% in the past 24 hours.
DOT coin price, as the price action suggests, has failed to sustain bearish pressure as it fell below the demand zone. As of now, the coin price is forming a lower-low and lower-high price structure on a daily time frame. As the coin price retraces back to the FIB level, it currently trades at the price level of $6.322 (press time).
DOT Coin Price Forms a Negative Price Structure
DOT coin price has been trading below the demand zone on a daily time frame after it came under strong bearish pressure despite a neutral trend in the market. As of now, the coin price is trading below the 50- and 100-day Moving Averages. This comes after the coin price failed to bounce off the demand zone leading to the breakdown of these important MAs. Moving upwards, these MAs can be seen acting as a strong supply zone during a pullback in the bearish run.
DOT coin price has been trading at the lower band of the Bollinger band indicator at the upper band after failing to surpass the 15 EMA. Volumes increased as the coin price failed to sustain at the demand zone. Investors should remain cautious and wait for a proper breakout of the supply zone after the volatility settles to not get caught in traps.
DOT Coin Price Retraces Back to the Breakdown Zone
ADX curve has been rising on a higher-time frame as the coin continues to move upwards, as it retests the breakdown zone. In an hourly time frame, the ADX curve dipped out of the 20 mark and has turned upwards. As seen in the 4-hour time frame, the ADX curve has risen above the zone indicating strong bullishness. As the coin price hovers around the supply zone, the ADX curve is still pointing upward. Investors should wait for a breakout from the supply zone with a positive candle formation.
The MACD indicator has given a positive crossover as the coin rose to the breakdown zone. The blue line crossed the orange line on the upside. This has resulted in the coin price moving up strongly. Once the coin price starts moving up again after retesting, the gap between the blue and orange lines can be seen widening, supporting the trend.
Conclusion: DOT coin price is bearish as it broke down a key demand zone. Technical parameters are indicating otherwise as the price retests. If the coin price starts falling again, after facing strong bearish pressure at the supply zone, then the technical parameters could also be seen falling. Investors should wait for a proper trend on either side and then act accordingly.
Supportport: $5.7 and $5.1
Resistance: $6.7 and $7.1
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
