Ethereum

Polkadot

Resistance

Polkadot (DOT) is showing bearish signs below the $8 resistance against the US Dollar. The price could extend its decline if it fails to stay above $6.00. 
<ul> 
 <li>DOT is gaining pace below the $8.80 and $8.00 levels against the US Dollar.</li> 
 <li>The price is trading below the $7.20 zone and the 100 simple moving average (4 hours).</li> 
 <li>There is a key bearish trend line forming with resistance at $6.50 on the 4-hour chart of the DOT/USD pair (data source from Kraken).</li> 
 <li>The pair could continue to decline toward the $5.00 support zone.</li> 
</ul> 
<h2 id="polkadot-price-resumes-drop">Polkadot Price Resumes Drop</h2> 
After a steady increase, DOT price faced resistance near the $7.60 zone. It formed a short-term top and started a fresh decline below the $7.00 level, like <a href="https://www.newsbtc.com/analysis/eth/ethereum-price-plunges-2800/" target="_blank" rel="noopener ">Ethereum</a> and <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-nosedives-60k/" target="_blank" rel="noopener ">Bitcoin</a>. 
There was a move below the $6.20 support zone. A low was formed near $6.03 and the price is now consolidating losses. It is slowly moving higher above the $6.35 level and the 23.6% Fib retracement level of the downward move from the $7.58 swing high to the $6.03 low. 
DOT is now trading below the $7.00 zone and the 100 simple moving average (4 hours). Immediate resistance is near the $6.50 level. There is also a key bearish trend line forming with resistance at $6.50 on the 4-hour chart of the DOT/USD pair. 
<a href="https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-605915" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461" alt="DOT Price (Polkadot)" width="1024" height="461" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=1835 1835w, https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/Polkadot-DOT.png?resize=1024%2C461?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"></a> 
Source: <a href="https://www.tradingview.com/symbols/DOTUSD/" target="_blank" rel="noopener nofollow">DOTUSD on TradingView.com</a> 
The next major resistance is near $7.00 or the 61.8% Fib retracement level of the downward move from the $7.58 swing high to the $6.03 low. A successful break above $7.00 could start another strong rally. In the stated case, the price could easily rally toward $8.20 in the near term. The next major resistance is seen near the $10.00 zone. 
<h2 id="more-downsides-in-dot">More Downsides in DOT?</h2> 
If DOT price fails to start a fresh increase above $7.00, it could continue to move down. The first key support is near the $6.00 level. 
The next major support is near the $5.65 level, below which the price might decline to $5.00. Any more losses may perhaps open the doors for a move toward the $4.20 support zone or the trend line. 
Technical Indicators 
4-Hours MACD – The MACD for DOT/USD is now losing momentum in the bearish zone. 
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level. 
Major Support Levels – $6.00, $5.65 and $5.00. 
Major Resistance Levels – $6.50, $7.00, and $8.50.

DOT Price (Polkadot) Approaches Key Level: Should Traders Brace for Sharp Drop?

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