Polkadot (DOT) – On the verge of an outlook deterioration

Polkadot (DOT) – On the verge of an outlook deterioration

Posted on Thursday, June 30 2022 at 9:28 pm GMT+0000

Polkadot (DOT) sellers re-emerged last Sunday near the area linking the June 15th peak of 8.77 and the Kijun-sen line, redirecting the price towards mid-June lows.

From a technical perspective there is scope for additional bearish developments in the coming sessions as the Tenkan-sen line reversed back lower beneath the Kijun-sen line, and the oscillators are signaling that the negative impetus is growing. The RSI is diving below its moving average in the bearish territory and the CCI just nudged underneath -100.

However, for the recent descent to get more legs, the price will need to dive past the adjacent 6.45 – 6.35 support region. In such a case, bears will initially target the 5.84 barricade taken from the 30th of November 2020 inside high. If the price successfully navigates lower, all eyes will turn to the December 2020 low at 4.52.

Otherwise, if buyers manage to make a significant comeback and step over the nearby Ichimoku lines, initial resistance could transpire from the recent high at 8.77. If positive pressures strengthen further the Ichimoku cloud may try to delay a test of the May 30th high of 10.83.

Overall, Polkadot is on the verge of an outlook deterioration as the price is testing the bottom of its long-term downtrend. A decisive step below 6.35 is expected to trigger the next bearish action, while a fast rally above the 8.77 area is required to bring buyers into play.