Polkadot Price Analysis: The DOT Coin Shows Buying Pressure Below 0.618 FIB Level; Will This End its Correction Phase?

The price correction in DOT coin got extended and lost almost half of its value. With this fall, the coin bears also reclaimed the 200 EMA line dropped the price to 0.618 Fibonacci retracement level. Currently, the chart indicates several lower price rejection candles at this level, suggesting a possibility of bullish reversal from this level.

Key technical points:

• The DOT price drops below the 200-day EMA
• The intraday trading volume in the DOT coin is $1.49 Billion, indicating a 17.32% loss

Source- DOT/USD chart by Tradingview

The last time when we covered the DOT/USD, the coin price was trying to sustain above the 0.5 FIB. However, giving a minor pullback on the upside, the price started to drop again and even broke this bottom support level and 200 EMA together.

As for now, the price has plunged to the 0.618 FIB level and indicated several lower price rejection candles, projecting the presence of intense demand pressure at this level.

The crucial EMA levels(20, 50, 100, and 200) indicate a bearish outlook for this coin since its price is trading below the trend defining 100 and 200 EMA. Moreover, the Relative Strength Index(33) has reached the oversold territory, allowing enough space for potential growth.

DOT/USD 4-hour Time Frame Chart

Source- DOT/USD chart by Tradingview

Though the DOT coin indicates a bullish reversal from the bottom support, the price still has to face the overhead daily 200 EMA resistance to confirm its recovery. Therefore, the crypto traders can consider this area between the $33.6 and $26.5 mark as a No-trading zone. 

Once the price gives a breakout from either of these levels, these traders will have a better idea for the further course of price.