🚀Buckle up, Bitcoin enthusiasts! Polkadot (DOT) is currently experiencing a bearish trend, with a significant drop in demand and intensified selling activity. The price has plunged below the critical $6 support region, triggering a flurry of long liquidations. 📉
The daily chart reveals aggressive selling near the $6 support region, indicating a lack of sufficient demand. The price has breached this substantial support, aligning with the lower boundary of a multi-month triangle and previous major swing lows. This is a notable bearish sign. 😬
The 100-day moving average is on the brink of crossing below the 200-day moving average, signaling a death cross. This development further suggests a prevailing bearish sentiment in the market. A sustained bearish trend towards lower price levels is likely if the breakout is confirmed with a successful pullback. 😟
On the 4-hour chart, Polkadot faced significant rejection near the $6.8 supply zone after an impulsive surge. This completed a pullback to the broken region and verified the initial breakout, indicating the sellers’ dominance. 📊
However, the price action in the coming days will determine the breakout’s validity. If a pullback occurs and holds below the $6 mark, the continuation of the bearish trend will be imminent. 🧐
Analyzing the futures market sentiment can provide valuable insights into the cryptocurrency’s potential future path. The recent bearish descent is mirrored by a significant plunge in the Open Interest (OI) metric, reaching its lowest value. This indicates a lack of interest from market participants in taking aggressive long positions. 📉
Unless a change in the upcoming days brings demand back into the market, the bearish trend is likely to continue. So, keep your eyes peeled, Bitcoin lovers! 🚀