DOT/USD continues to traverse slightly above rather nervous support levels as the cryptocurrency struggles to establish a dominant short-term trend. As of this writing, Polkadot is above the 19.0000 ratio, but choppy conditions have been displayed the past couple of days and traders need to be alert for quick changes in price. While the percentage of value has not been wild, traders are cautioned to use entry orders so their price expectations are not crushed with bad fills when entering their trades.
DOT/USD hit a low of nearly 18.0000 in yesterday before reversing higher. The market action in Polkadot has reflected the broad cryptocurrency market which struggled over the weekend, flirted with lows yesterday among many of the major digital assets, and then saw some buying emerge. DOT/USD continues to wander within the lower elements of its short and mid-term ranges.
On the 3rd of February, DOT/USD did trade near the 18.0000 ratio also, yesterday’s test of this price held firmly. Technical traders still have an important decision to make regarding direction. Short-term support levels seemingly have held, but the question is if the slight reversal demonstrated the past twelve hours is a move which can develop additional momentum upwards, or if a return to lower values will soon be seen again.
DOT/USD is lingering within the bottom of its mid-term price range. Recently, on the 8th of February, DOT/USD did climb to a high slightly above the 23.0000 juncture, but it ran into headwinds and was not able to really establish a challenge to a higher price range seen before the ‘crash’ in prices which occurred as the third week of January concluded.
Like the broad cryptocurrency market, Polkadot has not been able to break the important resistance levels which can be seen via prices on the 20th of January. Because of this, DOT/USD remains suspect in the eyes of traders who may see more opportunities to the downside if nervous sentiment persists. DOT/USD has incrementally been trading lower since the first week of November.
Choppy conditions may remain the taste of the market for DOT/USD near term. Traders are advised to use stop loss and take profit orders to engage in quick hitting trades which take advantage of technical reversals.
Conservative leverage should be used and trading ambitions should be kept realistic. If DOT/USD can break above the 19.5000 mark and sustain it values, it may challenge the 20.0000 mark near term. If DOT/USD suddenly starts to move towards the 18.7500 level, traders may believe 18.5000 and 18.0000 are legitimate selling targets for wagers.
Polkadot Short-Term Outlook
Current Resistance: 19.5600
Current Support: 18.7300
High Target: 20.0700
Low Target: 17.9000
