- Polkadot price fades recovery from four-week low, eyeing another attempt to break $1.00.
- Overheated stochastic, lower Bollinger Band test DOT bears.
- A clear downside break of seven-month support keeps Polkadot price on the seller’s radar.
- DOT remains vulnerable to refresh record low as long as the price stays below $3.90.
Polkadot (DOT) takes offers to reverse previous rebound from a four-week low, down 1.90% intraday to $2.62 early Thursday in New York.
In doing so, the DOT sellers defend the early-week breakdown of a seven-month support, now resistance.
However, lower Bollinger Band (BB), softer trading volume, and overheated stochastic signal the need for a strong bearish catalyst to revisit the record low marked in October.
According to Santiment, Polkadot’s daily trading volume eases for the second consecutive day after hitting a weekly high, to $227.78 million, while the market capitalization (market cap) retreats to $4.25 billion by press time.
On the same line, growing chatter surrounding the U.S. government reopening and the recently upbeat data, as well as the Sino-American trade deal optimism, seem to challenge the DOT bears.
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Polkadot Price: Daily Chart Lures Bears
Polkadot’s failure to offer a daily close beneath the falling support line from April triggered following corrective bounce. However, the quote’s pullback from the middle Bollinger Band (BB) and a sustained break of the seven-month support, now resistance near $2.75, suggests the quote’s another attempt to revisit the $1.00 zone.
Still, multiple downside supports and oversold stochastic conditions, close to the 30.00 lower boundary, can offer intermediate consolidation in the Polkadot price.
That said, the lower BB of $2.56 and the $2.00 threshold act as immediate supports to watch for the DOT sellers to watch.
Following that, the August 2020 low of $1.42 and the $1.00 psychological magnet can test the bears ahead of the October bottom of $0.97, which is also the all-time low.
Meanwhile, Polkadot’s recovery needs a daily closing beyond $2.75 to convince short-term buyers. Even so, the middle and the upper Bollinger Bands, respectively near $2.93 and $3.31, might challenge the buyers. Also acting as a short-term upside hurdle is the $3.00 round figure.
Notably, the DOT’s successful run-up beyond $3.31 may aim to cross the lows marked in August and September, close to $3.43 and $3.61 in that order, but the 200-day Simple Moving Average (SMA) hurdle of $3.90 acts as the final defense of the bears.
Polkadot Price: Four-Hour Chart Highlights Bearish Bias
Polkadot’s four-hour chart appears to be more bearish than the daily formation as the stochastic line retreats from the overbought territory, suggesting a further pullback in the prices.
This highlights the 38.2% and 23.6% Fibonacci retracements of the DOT’s September-October downturn, near $2.47 and $1.90 respectively, before directing bears toward the daily chart’s deeper levels.
On the contrary, a month-old descending resistance line can restrict Polkadot’s corrective bounce near $2.88.
Following that, the 50% Fibonacci ratio of $2.94 and the 200-bar SMA of $3.24 can challenge the DOT bulls ahead of the higher levels discussed on the daily chart.
Conclusion
Given the altcoin’s sustained trading beneath the key support, now resistance, as well as an absence of positive fundamental news, Polkadot price remains vulnerable to reverse the previous day’s corrective bounce and aim for the record low. However, the oversold stochastic and the nearby support levels might portray the DOT’s gradual south-run, rather than a quick slump in the price.
