The DOT / USD fell dramatically yesterday as it was hit by a wave of nervous sentiment that is expressed in the broad cryptocurrency market.
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DOT / USD fell from a high that was in sight of the 36.0000 mark yesterday, to a sudden and rapid low of almost 22.0000. As of this morning, Polkadot is trading near the 26.0000 ratio as it approaches the levels of medium important developed in late August. Yesterday’s high of almost 35,7000 hit marks not seen since May 19, but unfortunately the mid-term peak did not last long. A sudden and brutal selloff hit the broad cryptocurrency market and the DOGE / USD suffered along with many of its major counterparts.
While many analysts are blaming what is perceived as a complicated “launching” from Bitcoin in the nation of El Salvador yesterday as the reason for the lowest peaks within the world of digital assets, the real reasons are not as simple as this mere statement. The DOT / USD and a host of others cryptocurrencies major players have been testing medium-term highs, and yesterday’s fierce sell action may have been a case of Profits before they evaporate into the air. Certainly the feeling of nervousness played a role in the sudden drop, but when the sale increased, it came in a fierce and swift move.
While DOT / USD was able to reverse yesterday’s low, the cryptocurrency remains within a critical juncture that will test speculators’ perceptions. If the 26.0000 level begins to be challenged to the downside, this could indicate that the late August value range is going to see legitimate test. Between August 16 and August 31, the DOT / USD showed a price band between 22.7500 and 29.3000.
Remember that on July 20 the DOT / USD was trading near the 10.0000 mark. Yesterday’s high is a significant achievement, and shows that much optimism and speculative interest remains in Polkadot. The sudden drop was not a sell caused by a change in opinion regarding DOT / USD, it was a reaction from the broader market and Polkadot simply correlated with the move.
The trend DOT / USD bullish continues to be quite tempting. However, cautious traders will want to see increased stability in the market before attempting to buy positions that attempt to take advantage of potential oversold conditions in the DOT / USD. You need to keep an eye on support levels. If the coordinates of 26.0000 to 25.5000 prove durable in the short term, this could set the table for a bullish reaction.
Polkadot Short-Term Forecast:
- Current Resistance: 27.1400
- Current Support: 26.0100
- High Target: 29,4000
- Low Target: 24,3500