Polkadot (DOT) after a two-day consolidation fell sharply on Monday. Sellers remain in control of the trend from the $55.00 high made on Nov. 4 and lose more than 50%. The bull run that started on January 10 took a break on Monday.
- Polkadot (Dot) extends losses on Monday with a drop of more than 4%.
- Support confluence on the brink of breakdown.
- Below the 200 EMA, sellers remain in control of the price action.
The bulls lose the ability to hold below the 200 EMA
Polkadot (DOT) price faces very strong resistance near the descending trendline from the 2021 highs made on Nov. 4 at $55.00. Buyers could not find any buying opportunities on a break of $50.33. The downside is looking for short-term support around $23.0. After testing the 200-EMA (Exponential Moving Average), DOT dropped to lower levels again.
The daily Relative Strength Index (RSI) reads at 47, which signals the continuation of the downtrend. Furthermore, the MACD (Moving Average Convergence Divergence) trades below the moving averages with a neutral stance. Volume is also down 11.53% over the last 24 hours. The consolidating balanced volume (OBV) indicator shows that declines are capped near lower levels around $23.0.
On the other hand, if the price falls below the January 11 close at $23.52, the bears will attack $22.0. The levels were last seen in July.