Polkadot [DOT] has been under consolidation since the 20th Feb market-wide pullback right after hitting its new all-time high above $42. The crypto asset was in anticipation of a clear breakout after its trading contracts sustaining a flash crash.
Prices for the quarterly perpetual-futures contracts on Polkadot were found to be around $33.2 before tumbling more than 99%. According to reports, the contracts in question dipped as low as $0.25 in less than a minute, despite a swift rebound close to $33.
Polkadot [DOT] spot prices have, however, remained fairly unfazed by the market movement. Over the last 24-hours, the token was up by 5.74% which catapulted it to the current price level of $34.31. At the time of writing, DOT registered a market cap of $31 billion and a 24-hour trading volume of $1.5 billion.
Polkadot [DOT] Daily Chart:
On the daily chart, Polkadot’s value shrunk to a symmetrical triangle pattern which has been taking shape over the past two weeks The formation of this pattern could mean a break out in either direction. Hence, the current level will be decisive for the future of the digital asset.
Glancing at the chart, the falling prices depicted less volatility in the coin market. In addition, it can also be stated that the DOT bulls need to push the price above a crucial resistance level at $34.9 to strengthen its chances for a bullish breakout.
Aligning with the bulls were the moving averages 50 DMA [Pink] and 100 DMA [Blue] which continued to hover well below the DOT candles carefully supporting the price from extended losses.
The red closing bars instilled fear of bearish momentum gaining traction in the coming days which could flip the potential breakout towards the negative zone.
The MACD also indicated downward pressure as bears continued to dominate the demand.
The RSI, on the other hand, held its fort above the 50-median line and did not depict any signs of a fall to the sell zone. This evidenced a sentiment of buy pressure being intact among the investors of the DOT market.
The market trend signals a pullback that could result in Polkadot testing its immediate support area of $31.1. Failure to hold this level could also lead to a drop to $26.8. Yet another support level stood at $25.
If the sell-pressure fails to intensify and the technicals flip bullish, Polkadot’s resistance targets at $37.2 and $39.6 could come into the spotlight respectively.