Jul 13, 2022 04:30AM ET
By: AnalysisWatch
Polkadot (DOT) continues its downward movement below the four-month trend line.
For DOT to truly make a comeback, the cryptocurrency needs to break above the 20 EMA.
If the current candle closes above immediate support, this could also serve as confirmation that DOT could see a rally.
Polkadot (DOT) continues its downward movement below the four-month trend line. The current price of DOT has found its place in the $6.45 area. If the cryptocurrency's price can bounce off this support, it could lead to some sort of revival.
Recent liquidations caused DOT to fall to its 17-month low on 13 June. After that, buying pressure picked up a little. Ultimately, however, the 20 EMA was able to keep the buying rally under control. For DOT to really make a comeback, the cryptocurrency stock needs to break above the 20 EMA.
If the current candle closes above the immediate support, this could also serve as confirmation that DOT could see a recovery.
Following DOT's recent bearish flag, the cryptocurrency's price fell almost 10% and approached the $6.4 baseline. This means that investors should look for a close beyond the $6.45-$6.5 range to create buying momentum.
However, if the DOT price fails to close above this range, the cryptocurrency could be poised for a decline. If the price falls below $6.4, this could lead to an 8-10% price decline for DOT.
According to CoinMarketCap, DOT is currently trading at $6.40, having fallen 1.28% in recent days and 6.60% in the last week.
The cryptocurrency's 24-hour trading volume is also currently down 6.34% and stands at $297,161,708.