Polkadot is the Altcoin that suffers the most from the crypto collapse. The descent led DOT to break the key support, confirming the bearish trend
Among the tokens that accompany the crypto market in downward movements, both small and large, Polkadot (DOT) stands out for going down more frequently than the others. Yesterday recorded a decline of the 9,61%while the previous day, during the conference Jerome Powellwhich started the current bearish phase, DOT had recorded a -9,52%.
polka dots
$ 6.37
-1.21 $
(-15.97%)
The data refers to the past and is not an indicator of future results.
Current situation and Polkadot performance
At the current price of this writing, DOT quota 6,70 USDand has returned below the value of the beginning of December, marking a drop in 43% compared to the maximum of 11,64 USD reached at the beginning of the month. Even today, at the moment, it records a 5% intraday decline.
This ongoing correction brought about December in red of the 26%after +125% of November. Year-to-date performance is also back in negative by 19%.
Historical analysis of the Polkadot trend
In the monthly chart attached, you can see the historical overview of Polkadot. The price had reached an all-time high of 55,090 USDT in November 2021, from which a long bearish phase began. This long-term bearish trend it is still ongoing.
The recent trend and key levels
In October 2023, DOT hit a period low at 3.564 USDTfrom which a rise began and continued into 2024, leading to an annual peak of 11.89 USDT in May. From that point, a new corrective phase began until the minimum of August a 3,59 USDT.
In the following months, until early November, the price remained compressed around the area of 4 USDTuntil boom post-Trump election. However, from this long-term perspective, it is evident that DOT is still in a bearish trend primario.
Key resistances to exit the bearish trend
To get out of this situation, DOT must overcome much higher levels of resistance:
- First resistance: 23.20 USDT
- Second resistance: 29.40 USDT
DOT the most troubled Altcoin undergoing collapse
As mentioned, Polkadot it is the crypto that is suffering the most in this phase market collapse. In the attached graph we report the performance of the main cryptocurrencies of the Top 20 per market cap since the beginning of the week. Here we note how the price of $DOT are struggling with Uniswap for the record among those who descend the most.
Weekly chart analysis
Moving on to the Polkadot situation on the weekly chartwith an overview from the beginning of 2024you can clearly observe the weekly candle of deep red that marks a -26,60%. This weekly candle turns out to be the worst since the beginning of the year. To find a worse candle, we need to go back to January 2022when he closed with a -32%.
Violation of key supports
The problem with this scenario is that, with this descent, Polkadot broke the main support of the vector in command, i.e. the one that goes from minimum of 3.59 USDT of August until annual maximum.
Support a 7,70$which corresponds to 50% ofthe withdrawals of Fibonaccihas been hacked. Statistically, a break of this level often leads to sharp declinesas is happening now.
Current scenario and next support area
In this scenario, now defined as a crolo per Polkadotand identify asupport area that passes between 5,40$ e 5,50$ USDT. This area corresponds to a -53% compared to the recent high at the beginning of the month.
Unfortunately, this descent nega a possible one bullish structure that was forming, confirming the persistence of bearish trend which Polkadot has been following since the first quarter of 2022.
