The DOT/USD currency pair traded up $4.80 before downward pressure pushed prices to lows of $4.25
The price of Polkadot has fallen below a key support area and seems to be getting weaker and weaker in shorter terms.
The weakening of the bullish outlook occurs amid Bitcoin Code widespread settlements in the cryptomeda market, which may reduce token trading of the fragmented protocol in the coming sessions.
Notably, the DOT/USD pair faces strong resistance in an area that the bulls have tried to overcome several times in the last 24 hours without success.
DOT/USD: Short-Term Perspective
The weekly resistance area around $4.44 remains the key price level for DOT bulls. The area provided the initial breakout barrier for highs of $4.80 and now appears to restrict the bulls‘ attempt to break high after a downward reversal saw the bears take the token value to lows of $4.25.
At the moment, bears are rejecting trades on the 50-day simple moving average, on the 4-hour chart near $4.40.
The area is critical as an analysis from here can see the DOT/USD pair plummet to minimums of $4.00 and then $3.75. On the other hand, a breakout on the upside means buyers can target recent highs of around $4.80 and the psychological level of $5.00.
4 hour price list for DOT/USD. Source: TradingView
As we can see from the chart above, the MACD is down suggesting that the short-term price movement is more likely to remain downward. The downward sloping RSI offers the same short-term prognosis.
But bulls may still return to prevent bears from lowering the price. This likely movement for bulls is reduced to a technical picture provided by the buy signal formed on the 4-hour chart. Here, the TD sequence printed a red nine candlestick to suggest that the bulls have an opportunity to buy the fall, reposition and push higher.
For the bulls, a breakout to $4.80 highs is likely if they maintain prices above $4.35 and close at the $4.40 range. The opposite, however, will encourage bears to try and push up on the mentioned price levels.
At the time of writing, the token was being traded at $4.33 per US dollar, down 3.95% on the day.