DOT drops to $ 4.5 as help weakens

  • The Polkadot price appears to be facing short-term selling pressures.
  • Bulls need to maintain a critical level of support to prevent DOT from falling any further.

Polkadot rebounded sharply from its November 26 low of $ 4.43 and hit $ 5.53 to hit a new high for 2020. Unfortunately, one key indicator suggests that DOT is on the verge of retreating in the short term.

Polkadot price under heavy selling pressure

On the 9-hour chart, the TD Sequential indicator has been showing a sell signal that appears to be causing a lot of bearish bearish action. The 50 SMA acts as a strong support level at $ 5.10.

DOT / USD 9 hour chart

A break below the 50 SMA would be a clear bearish sign that could bring the Polkadot price down to the 100 SMA at $ 4.7. In addition, the TD Sequential appears to be on the verge of sending a sell-signal on the 3-day chart.

Point price

DOT / USD 3-day chart

The current green ‘8’ is a strong indicator of a potential incoming green ‘9’ sell-signal like the one on the 4-hour chart. This rise in selling pressure gives the upper hand in the short term.

However, if the bulls can decisively defend the 50 SMA support level on the 9-hour chart and push the Polkadot price above $ 5.5, the digital asset could quickly make new highs above the 2020 high of $ 6.08 climb.

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