- Polkadot bulls are working around the clock to reclaim the ground within an ascending parallel channel.
DOT/USD must close the day the 100 SMA to confirm the uptrend towards $5.4.
Polkadot was not left spared by the bearish wave that swept across the market on Thursday. The altcoin lost up to 33% of its value in a few hours and traded a weekly low of $4.28. At the time of writing, DOT is doddering at $4.78 amid the struggle to resume the uptrend.
Polkadot recovery becomes an uphill battle
DOT/USD is fighting tooth and nail to reclaim the position inside an ascending parallel channel on the daily chart. The longer the price stays under this key level, the stronger the bearish grip becomes.
The Relative Strength Index has started to level at the midline, hinting at sideways price action. In other words, the path with the least resistance is neither up nor down, mainly due to the low trading volume.
Looking at the 4-hour chart, Polkadot appears to be stuck between strong resistance and support areas. The immediate upside is limited at the 100 Simple Moving Average, while on the downside, DOT is holding above the 200 SMA.
Closing the day above the 100 SMA might elevate DOT to the 50 SMA at $5.4, which might call for more buy orders and force the resumption of the uptrend beyond $6. However, the RSI in the same 4-hour doubles down on the possibility of consolidation.
On the flip side, if Polkadot closed the day under the 200 SMA, massive losses could be triggered towards the next support levels at $4 and $3.5. For now, a sideways trading action might help bring back balance before a breakout comes into the picture.
Polkadot intraday levels
Spot rate: $4.8
Relative change: -0.012
Percentage change: -0.1%
Trend: Sideways price action
Volatility: Low