What’s Next for Polkadot (DOT) Price After Breakdown From 250-Day Support?
Polkadot (DOT) price reached its lowest daily close since November 2020 on September 5. The decrease also caused a breakdown from a critical support area.
Both the weekly and daily timeframe readings are bearish. This is because of both the price action and RSI readings, which support the possibility of more downside.
Despite this bearish DOT price prediction, a breakout from the long-term descending resistance line will mean that the trend is still bullish. a 75% increase could follow in that case.
The Polkadot (DOT) price has broken down from a 250-day horizontal support area, reaching the lowest daily close since November 2020.
The weekly and daily time-frames both provide a bearish outlook, suggesting that the downward movement will continue toward new lows.
Polkadot Price Reaches Lowest Close Since 2020
The technical analysis for the daily timeframe shows that the DOT price has fallen under a descending resistance line since Feb. 19. While doing so, the price also bounced at the $4.30 horizontal support area.
On September 1, the DOT price finally fell and closed below the $4.30 support area. At the time of the breakout, the area had been in place for 246 days.
The daily close of $4.21 was the lowest since November 2020. Even though the price has not accelerated its rate of decrease yet, it is validating the $4.30 area as resistance (red icon).
The daily RSI offers hope for a bullish trend reversal despite this bearish price action. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
If the breakdown gets confirmed in the weekly timeframe, the DOT price could quickly fall to $1. This would break the all-time low support region of $2. The target of $1.20 is found by projecting the triangle’s length to the breakdown point (white).
