With the market sliding down, the altcoins are facing immense sell-offs and cracking under multiple support levels. In a similar condition, the DOT price trend showcases a bearish pattern breakdown that signals a downfall trend.
With constant hammering on the $6.50 support level and 50% Fibonacci level, the Bears are finally breaking through for a downslide. Under such conditions, the FUD is growing amongst investors, which may soon lead to a sharper pullback.
To avoid facing early exits, read our Polkadot price prediction for a long-term picture.
Source – Tradingview
In the daily chart, the DOT price shows a remarkable bearish trend reversal with a head and shoulder breakdown. Further, the breakdown rally finds a significant increase in trading volume and warns of a continuation of the bearish trend.
The $6.50 breakdown tests the 200-day EMA and warns of a breakdown in case the selling pressure increases. Currently, the DOT price trades at $6.10 and shows an intraday fall of 3.79%, leading to a strong bullish candle.
Technical Indicators:
MACD indicator: The MACD and signal lines showcase a sharp, bearish trend continuation as it crosses below the zero line. Further, the rising bearish histograms add points to the possibility of downfall.
Will The DOT Price Crash Under $5?
As 2024 turns into a bearish year at the start, altcoins are rolling off the runway and plunging to new lows for this year. Further, the DOT price is shifting gears to enter a high-speed bear run. As of now, the 200-day EMA acts as the final support and may lead to a drop under $5 to $4.80.
On the flip side, a bounce back from the dynamic support can test the $7 mark.
