DOT/USD has been able to create a slight reversal higher the last day of trading, but it remains within sight of important support levels which may fuel nervous sentiment.
Since reaching its apex highs in early November 2021, DOT/USD has slumped along with the broad cryptocurrency market. The high above 55.0000 on the 4th of November feels like a long time ago, particularly as DOT/USD has crashed through support levels which continue to display signs of vulnerability. As of this writing, DOT/USD is near the 18.5000 ratio.
DOT/USD is now within sight of late July 2021 values, but has been able to maintain its price above lows seen on the 20th of July when the cryptocurrency traded below 11.0000 USD. This can be viewed as good or bad depending on technical outlook. The ability to remain above July lows could be interpreted by bullish traders as a sign that Polkadot can withstand the onslaught of vicious downward trajectories and will be able to reverse upwards from its current depths.
However, bearish traders may look at the value of DOT/USD and think that if more nervous sentiment is generated within the broad cryptocurrency market, more downwards movement could be displayed. The slight price recovery by Polkadot competitors yesterday may point to sunnier days, but it could also prove to be only a temporary rally within the midst of a down cycle that still has room to maneuver.
If DOT/USD falls through current support and tests the 18.0000 level, traders will see quite clearly that Polkadot hit a depth below 16.0000 only two days ago. The recovery in price of two dollars is a nice gain, but volatility is obviously still present and so is the threat of headwinds. Until DOT/USD safely begins to sustain value over the 20.0000 traders may not be comfortable with upwards momentum. In fact, climbs in value which touch resistance levels may prove to be proper trigger to ignite selling positions for speculators.
The ability of DOT/USD to remain above its lows of July 2021 may prove to be interesting as a negative target for bearish traders. Speculators who are selling are reminded not to be overly ambitious and use a conservative amount of leverage, but targeting nearby support as take profit targets may prove to be a worthwhile wager if more nervous sentiment is generated.
Polkadot Short-Term Outlook
Current Resistance: 19.1000
Current Support: 17.6400
High Target: 20.1500
Low Target: 15.5200