DOT/USD remains near troubling support levels, as it battles within a consolidated range which is providing short term traders an opportunity to seek quick hitting trades.

DOT/USD is trading above the 9.0800 mark as of this writing.  Two days ago DOT/USD was able to provide a brief run higher and move slightly above the 10.0000 mark. However, a sudden selling storm within the broad cryptocurrency market caused havoc in DOT/USD and the value of the cryptocurrency swiftly dropped again and touched a depth of approximately 8.8300 yesterday.

Since the 18^th of May DOT/USD has largely traded between the 10.7500 and 8.8000 junctures with the occasional outlier being seen.  DOT/USD like its major counterparts remains gripped within a bearish trend which shows few signs of relenting anytime soon. Incrementally the troubling technical aspect for traders who have maintained a bullish stance is the noticeable lowering of resistance levels since the middle of May.

DOT/USD last traded in a sincere manner over the 10.0000 ratio in the last week of May.  While a temporary amount of optimistic buying seemed to spring forward late last week and this weekend, sellers again showed that they control the market. The support level of 9.0000 is important for DOT/USD and if it falls below this juncture and suddenly finds it difficult to climb above, this would be an additional negative sign for Polkadot.

Short term speculators who like quick hitting wagers may be tempted to try and take advantage of the choppy conditions in DOT/USD.  In the past day of trading the 9.5000 has seemingly become the high water mark for DOT/USD and traders may be tempted to be sellers, if the cryptocurrency flirts with lower resistance ratios like the 9.2000 to 9.3000 vicinities while looking to ignite short positions.

Traders are advised to use a conservative amount of leverage, and make sure their take profit and stop loss orders are placed while participating in DOT/USD because volatility could increase in the blink of an eye. The consolidation in the Polkadot may be a negative indication, because DOT/USD has not been able to stage a strong reversal upwards. Skeptical traders who have been pursuing downward price action may grow encouraged if current support levels are broken and the 8.8900 level below is challenged.

Polkadot Short Term Outlook:

Current Resistance: 9.3200

Current Support: 8.9600

High Target: 9.9800

Low Target: 8.4600

There are several coins that I am watching right now that I do not think will be trading next year.

Polkadot had a very volatile trading session on Friday, but the sellers came back and punished anybody trying to pick it up. The $9.00 level looks as if it is trying to offer a certain amount of support, but it is more likely than not a situation where we are going to see this market break down below there. The $9.00 level is an area that opens up the possibility of a move back down to the $7.50 level, and then eventually to the $5.00 level.

The outlook for Polkadot is miserable to say the least. In fact, anything not named “Bitcoin” looks especially vulnerable. Even Bitcoin has been struggling. If we see that market unravel again, coins such as Polkadot are going to be eviscerated. As I look at the altcoin markets, nothing looks good with perhaps the minor exception of Monero, which seems to be in its own world recently. Because of this, all of these smaller markets are to be shorted every time they rally, and Polkadot is no different.

It looks as if the $10.00 level has offered quite a bit of resistance over the last couple of weeks, and the $12.00 level beyond that has been important as well. The 50-day EMA is near the $13.70 level and dropping. There is a nice spread between the 50-day EMA in the 200-day EMA, and it’s likely that we would continue to see a lot of negativity in this market. As long as we see the bigger coins fall apart, a smaller one like Polkadot stands no real chance. It’s also worth noting that there was a significant spike in volume, but we did not get a move to the upside. That’s normally a very bad sign, so I would not be surprised to see this market lose a few dollars in the next couple of weeks.

Unless we break above the $15 level at the very minimum, I just don’t see a situation where you should be a buyer of this market. If we did do that, then it could be the beginning of a change, but until risk appetite returns and the Federal Reserve changes its overall attitude, I just don’t see crypto going well. There are several coins that I am watching right now that I do not think will be trading next year.

DOT/USD has continued to fall and is traversing extremely important support levels in early trading this morning as buyers seem to have disappeared.

DOT/USD is trading near the 9.7000 price as of this writing.  DOT/USD was trading near the 10.7500 mark as late as the 23^rd of May, this after climbing back from a low of 9.1600 seen on the 19^th of May. On the 12^th of May DOT/USD did trade below the 7.0000 level temporarily. While optimists, if any are left, may proclaim the ability of Polkadot to climb higher off of these lows was an accomplishment, even they might not proclaim it a victory.

DOT/USD remains locked in an aggressive long term bearish trend.  Let’s please recall in late October of 2021 DOT/USD was trading near the 55.0000 level. The fall from these apex highs mirrors the results of the major cryptocurrency market, and it also reflects the seemingly dubious fact that speculative buyers are in very short supply.

DOT/USD is traversing values today, which were last traded in January of 2021.  Technically this is significant because it shows DOT/USD is trading below the over exuberant prices which started to develop in earnest around the middle of January in 2021, when prices in the digital asset sphere started to launch upwards across the board. In early February of 2021 DOT/USD was trading near the 20.0000 mark. If prices continue to slump and additional ‘supposedly’ support levels crumble, if would not be utterly shocking to see DOT/USD trade near the 6.0000 mark again and potentially even lower.

While backers of Polkadot may say its current price is vastly oversold, the lack of buyers able to produce a significant reversal higher is troubling.  If speculative buyers do not show an appetite for DOT/USD there is reason to suspect the cryptocurrency could falter more. A low of around 9.5000 was demonstrated early this morning and if this level erodes, technically traders should begin to think about important psychological marks if lower prices are sustained. This means numbers like 9, 8 and 7 could be considered in USD values.

Speculators should remain cautious and realistic about their ambitions. The price velocity of DOT/USD has not been ultra-powerful, but its inability to trade over the 10.0000 ratio could prove significant if this value starts to look like it will not be flirted with in the short term. Traders need to use solid risk management as sellers, and make sure they use entry price orders to meet expectations via their fills. Looking for more downside action with DOT/USD appears to be the logical wager near term.

Polkadot Short-Term Outlook

Current Resistance: 10.3400

Current Support: 9.5300

High Target: 11.2600

Low Target: 7.9800

Fading rallies will continue to be the way forward.

Polkadot continues to trend lower as the market is threatening to break down through the $14 level. The $14 level is an area that has been tested a few times over the last couple of days, but quite frankly this is a market that will almost certainly break down through that level. The market looks very likely to continue going lower, perhaps down to the $10 level.

Polkadot is suffering at the hands of the general negativity that is found throughout the crypto markets, as Bitcoin has gotten hammered, Ethereum has gotten hammered, and just about every other chart I looked at this morning all fell. The risk appetite is failing across the board, and it is obvious that crypto is going to continue to suffer at the hands of this. As Polkadot is an altcoin, it will likely have an outsized loss in comparison to the bigger markets.

At the $18.75 level, the 50 Day EMA is sloping lower. Above there, we have the 200 Day EMA which is sitting at the $23 region. I believe the area between both of these moving averages will continue to offer selling pressure. The market does not look like it is going to reverse anytime soon, but if we start to see money flow back into Bitcoin, that might be the first sign that we are going to rally. Polkadot continues to be sold, and at this point, it comes down to whether or not the coin is ever going to attract enough in the way of use. If Bitcoin breaks down below the $30,000 level, I suspect that another market such as Polkadot is going to continue to be toxic, so I would have no interest in buying this market.

However, if Polkadot drops down to the $10 level, we may see the market try to build a little bit of a base. Looking at the overall markets, I suspect that we are getting dangerously close to “crypto winter”, which will be toxic for this market. However, crypto winter ends and we will likely see some of these coins rally quite significantly afterward. If you have a longer-term time horizon, you might have the ability to pick up a bit of value, but I think you have plenty of time to do so. Fading rallies will continue to be the way forward.

DOT/USD has taken another negative turn in early trading this morning, generating a strong spike lower as it now has a one-month low in sight.

DOT/USD is trading above the 17.2000 mark in early trading this morning, but it started the day slightly below the 18.0000 level. The sudden burst of selling lower in Polkadot mirrors the price action being seen in the broad cryptocurrency market, which continues to see negative sentiment strengthen. The question now is if the selling being seen in DOT/USD and other cryptos will spark a reversal higher, or if there is more downside to come.

The last time DOT/USD sincerely traded below the 17.0000 mark was on the 13^th of March. It was also this date which was reflected in the broad cryptocurrency market too, when a sudden shift in sentiment began to be demonstrated and a bullish trend was displayed which brought positive price action into the marketplace. A high of nearly 23.8500 was seen on the 2^nd of April for DOT/USD, but since then bearish selling has been exhibited.

While optimistic bulls certainly still exist, sellers are once again being heard in DOT/USD and the lower price levels being demonstrated cannot be easily ignored.  One year ago today, DOT/USD was near the 38.0000 price. A record high of nearly 55.0000 was seen in early November 2021. The long bearish move seen since then looked like it may have been ready to be swept to the side in early April of this month, but the sudden price momentum lower which has mounted recently appears to be ready to produce more fireworks lower.

Support levels near 17.0000 need to be monitored in DOT/USD.  While a spike lower this morning was fast, a drop below 17 USD for Polkadot could spur on additional nervous sentiment. On the 7^th of March DOT/USD was trading a hair above the 16.0000 juncture. And as an additional scary thought, on the 24^th of February DOT/USD was trading slightly above the 14.0000 ratio. While optimists may believe DOT/USDS will produce a turnaround soon and prove buyers correct, fighting against the short term bearish trend may prove to be dangerous.

The broad cryptocurrency market appears to be fragile early this morning.  Polkadot and many of the other major digital assets did seeing selling pressure build this weekend, and as today has begun DOT/USD has seen another wave downward adding to poor sentiment.

Traders should be prepared for volatility in the near term, the cryptocurrency markets appear ready to put on a speculative violent show. Sellers of DOT/USD may be making the correct wager. Cautious traders may want to wait for slight moves higher to ignite their selling positions while looking for lower price action to be delivered again.

Polkadot Short-Term Outlook

Current Resistance: 17.8100

Current Support: 17.0500

High Target: 18.8900

Low Target: 15.9800

The market is likely to see a lot of noise more than anything else.

Polkadot fell hard on Monday as crypto got crushed. Polkadot is an altcoin, so that has a certain negative connotation to it. The market is significantly below the 50-day EMA, which is an indicator that a lot of people will pay close attention to. The size of the candlestick suggests that we are going to go lower, as it is rather large in comparison to the last several weeks, and it looks as if we are going to go looking towards the support level at the $16.50 level.

If we do break down below that level, then it is likely that we will go looking toward the $15 level. The $15 level is an area that would have a certain amount of psychological attention paid to it, and I think that there is probably a little bit of a bounce. If we break it down below there, the market will more than likely fall apart and collapse.

Alternatively, if we were to turn around and break above the 50-day EMA, the market will go looking to the $22.50 level. The 200-day EMA sits at the $24.35 level and offers a lot of psychological and structural resistance as well. Breaking above that indicator is a very bullish sign, but at this point, it does not look very likely to happen. Furthermore, you need to keep in mind that the rest of the crypto market needs to rally, especially Bitcoin and Ethereum. Those things drive the rest of the market, so you need to see strength in those “blue-chip coins.”

Another possibility is that we bounce around in the area between the two lines that I have on the chart, which would probably be a relatively bullish turn of events because it at least can get the markets to stabilize a bit. We have seen the weekend be very negative for the crypto markets, and we have been in a negative trend for quite some time. The market is one that even if we do turn around and go higher, you will need to be somewhat cautious, and you should have plenty of time to turn things around and build up a position. That being said, the market is likely to see a lot of noise more than anything else.