Consolidation is a Cause for Concern in Polkadot

DOT/USD remains near troubling support levels, as it battles within a consolidated range which is providing short term traders an opportunity to seek quick hitting trades.

DOT/USD is trading above the 9.0800 mark as of this writing.  Two days ago DOT/USD was able to provide a brief run higher and move slightly above the 10.0000 mark. However, a sudden selling storm within the broad cryptocurrency market caused havoc in DOT/USD and the value of the cryptocurrency swiftly dropped again and touched a depth of approximately 8.8300 yesterday.

Since the 18^th of May DOT/USD has largely traded between the 10.7500 and 8.8000 junctures with the occasional outlier being seen.  DOT/USD like its major counterparts remains gripped within a bearish trend which shows few signs of relenting anytime soon. Incrementally the troubling technical aspect for traders who have maintained a bullish stance is the noticeable lowering of resistance levels since the middle of May.

DOT/USD last traded in a sincere manner over the 10.0000 ratio in the last week of May.  While a temporary amount of optimistic buying seemed to spring forward late last week and this weekend, sellers again showed that they control the market. The support level of 9.0000 is important for DOT/USD and if it falls below this juncture and suddenly finds it difficult to climb above, this would be an additional negative sign for Polkadot.

Short term speculators who like quick hitting wagers may be tempted to try and take advantage of the choppy conditions in DOT/USD.  In the past day of trading the 9.5000 has seemingly become the high water mark for DOT/USD and traders may be tempted to be sellers, if the cryptocurrency flirts with lower resistance ratios like the 9.2000 to 9.3000 vicinities while looking to ignite short positions.

Traders are advised to use a conservative amount of leverage, and make sure their take profit and stop loss orders are placed while participating in DOT/USD because volatility could increase in the blink of an eye. The consolidation in the Polkadot may be a negative indication, because DOT/USD has not been able to stage a strong reversal upwards. Skeptical traders who have been pursuing downward price action may grow encouraged if current support levels are broken and the 8.8900 level below is challenged.

Advertisement

Polkadot Short Term Outlook:

Current Resistance: 9.3200

Current Support: 8.9600

High Target: 9.9800

Low Target: 8.4600