DOT/USD: Swift Fall from Highs Sees Test of Mid-Term Support

Robert Petrucci

DOT/USD has produced a wild stretch of trading since the end of March, and record highs seen only three days ago have produced a swift reversal lower.

DOT/USD has produced a whirlwind of volatility since the end of March and, as of this writing, the digital currency is near important support levels. On the 17th of April, DOT/USD traded slightly above 48.00 momentarily as it enjoyed the fruits of a speculative surge. However, after achieving the record heights, a swift and violent fall developed and, on the 18th of April, DOT/USD was trading near 34.50.

The current price vicinity of DOT/USD is approximately 33.5000 and it reached a low of nearly 31.60 early this morning. Volatility remains rampant within DOT/USD, but intriguingly, its value is now traversing an important support level which may prove attractive to speculators who look at one-month technical charts.

From the 27th until the 31st of March, DOT/USD mostly traded within the 31.5000 to 33.4000 range. However, on the last day of March, DOT/USD suddenly began to see a strong amount of buying take place and the 38.0000 was approached. Essentially, from the 2nd of April until the 18th of April, the 38.0000 level acted as a rather solid support level, but within the midst of the reversal lower from record highs, this mark was penetrated lower.

Cryptocurrencies have certainly experienced a rather action-packed week of trading as highs have been demonstrated with various degrees of reversals being produced throughout the market. Speculators within DOT/USD may use this knowledge as a foundation to maintain their optimistic bullish sentiment and continue to look for upside momentum to be exhibited.

If current support of 33.0000 to 32.5000 proves durable, it might signal that DOT/USD has the ability to ignite more bullish activity. Cautious traders will certainly want to see its current price range become sustained, but if this value band proves durable, speculators cannot be faulted for believing higher targets are capable of being hit.

The strong move downward in DOT/USD has been dramatic the past few days, but the ability of the digital currency to maintain its current value and not fall below its mid-term support prices of late March makes it worth considering. Buying DOT/USD may prove to be the correct speculative wager within it current price range while using limit orders to pursue the potential for bullish activity to be re-established short term.

Polkadot Short-Term Outlook:

Current Resistance: 34.6000

Current Support: 32.5000

High Target: 36.1800

Low Target: 29.6000

DOT/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.