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27/05/24
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Technical Outlook on the Performance of Polkadot (DOT)
The chart of DOT/USD shows that the activities of the bears prompted the formation of a base at price levels above $6.8, prior to the bulls initiating a modest move to the upside. Several barrier levels were broken close to $7.2 and there was a spike past $7.65. DOT was able to reach levels as high as $7.69 prior to initiating current consolidation of gains.
The bears pulled DOT beneath the support area at $7.5, and there was a fall beneath the 23.6% Fibonacci correction level of the upside move from $6.91 swing low to $7.69 high. A look at its 4-hour chart shows that its current performance is at levels above the $7.20 area, as well as above the 100 SMA.
Likewise, a look at its 1-hour chart shows the formation of a major bullish trend line with a support level at $7.4. The next barrier level is close to $7.7, while the immediate key barrier level is close to $7.8.
If XRP successfully breaks past $7.8, the bulls may be able to initiate a more significant move to the upside. In such a situation, it may be easy for the bulls to push DOT toward $8.2 over the coming few sessions. The immediate key barrier level is observed close to the $8.5 area.
On the other hand, the failure of the bulls to initiate a new upside move past $7.7 may empower the bears to keep its performance towards the downside. The initial major support level is close to $7.4, as well as near the trend line.
The immediate key support level is close to $7.3, as well as near the 4-hour 100 SMA or the 50% Fibonacci correction level of the upswing from $6.91 swing low to $7.69 high. The ability of the bears to pull DOT beneath the support level may prompt a fall to $7. If there are any additional losses, they may be able to pave the way for a fall toward the support area at $6.9 or $6.8.
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