- DOT token makes a morning star pattern in a daily time frame.
- The DOT/BTC pair was trading at 0.0005484 BTC with a gain of 6.67%
- The 24 hr trading volume in DOT is $1.36 Billion
In the daily time frame, the DOT token faced absolute rejection from the $28.8 resistance level (also the Fibonacci level 0.5) and has been pushed back to its previous support level of $19.5. On Sunday, price tried to make a morning star pattern promoting the rise of price from this level, but by the time of writing this article no follow-through is observed to confirm this rise.
Regarding EMA’s, DOT token is trading below, and the crucial EMA’s 20, 50, 100, and 200 indicate a strong bearish trend formation. Investors can also notice a bearish crossover 20 and 200 EMA boasting the bearish sentiment. Each of these levels will act as a good resistance when the price tries to move higher.
The RSI (BEARISH) value is at 44, indicating a neutral to slightly bearish emotion in price. In addition, investors can also see a formation of a bearish slope indicating the bears are slowly gaining momentum as the RSI line enters the overselling with no signs of reversal yet.
The 4hr Time Frame Head And Shoulder Pattern In DOT Token Promotes The Further Fall In Price
The 4hr time frame chart of the DOT token shows a head and shoulder pattern formation indicating more fall in price. For now, the price has just bounced back from the $19.5 support level and rose to the resistance trendline coming from the $28.8 mark. Until the price does not give a 4hr candle closing above this line, the bearish trendline will remain intact.
The MACD indicator (NEUTRAL) shows the MACD and the signal line are near the neutral(0.00)zone indicating a neutral sentiment in the market participants. With this, investors can also see multiple crossovers of these lines around the neutral level, indicating a sideways trend.
Conclusion: From the technical perspective, the overall market sentiment of the token is bearish. As price has reached a crucial resistance trendline, investors can wait and see price reaction at this line and make further decisions. If price gives a breakdown from the $19.5 level, the next crucial support DOT token can find is at $13.7