- 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.
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.