Polkadot Finds Support At $6 – How Long Will The Bulls Stick Around?

Polkadot price has been trying to recover on its daily chart as the altcoin has managed to move north over the past few days. Last week was tough as the altcoin lost close to 9% of its value. Although the price of the asset hasn’t shown considerable recovery and is trading laterally, the bulls are trying to push DOT near its immediate resistance level.

The technical outlook for DOT still shows a bearish influence. Demand and accumulation for the altcoin continue to remain low. The buying strength was also fading from the market, which caused the asset to dip further.

The bulls can still turn the price around if DOT manages to stay above its immediate support line of $6. If the bulls remain above the aforementioned support line, then DOT might attempt to breach the $7 mark, which is acting as a psychological barrier for the coin. Currently, the price of DOT is trading at 88% below its all-time high, which it secured in 2021.

Polkadot Price Analysis: One-Day Chart

DOT was trading at $6.70 at the time of this writing. The bulls are slowly attempting to rise above the daily chart. Even though DOT is making slow progress, the coin might encounter a stiff barrier at $6.90. Moving above $6.90 can invalidate the bears for a considerable period of time.

The other resistance levels for DOT stood at $7.30 and $7.70. The local support line for the altcoin was at $6.20 and then at $6. A fall from the $6 mark will strengthen the bears further. The amount of Polkadot traded in the last session was red as selling pressure mounted on the chart.

DOT was displaying signs of recovery, but buying pressure still remained low on the chart. The Relative Strength Index was below the half-line, indicating more sellers than buyers. The indicator noted an uptick, which showed a sign of optimism for the asset.

On the same note, the Polkadot price was below the 20-Simple Moving Average (SMA) line as sellers have taken over and are driving the price momentum in the market. It is imperative for DOT to topple the $6.90 mark, which will then push the altcoin above the 20-SMA line.

Bearish Inclination

Other major indicators have also displayed an inclination towards the bears despite a minor recovery. The Moving Average Convergence Divergence, which indicates price momentum and reversals, formed red signal bars tied to sell signals. The next trading sessions remain crucial for the Polkadot price.

The Chaikin Money Flow measures capital inflows and outflows at a given time. The indicator noted an uptick away from the zero line, suggesting that capital inflows have appreciated. This was a positive sign for the altcoin. DOT still has to trade above $6.90 in order for bullish momentum to gain strength.

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