Polkadot (DOT) has not been having an easy time in the crypto market. Its price has been dropping significantly, with the weekly chart looking quite ugly.
Since November 2021 until now, DOT has been bearish on the weekly timeframe. The price has fallen by more than 90% since then.
However, support at around $4 has been holding the price since shortly after its launch. It held in September 2020, January, July, and October 2023. It is also currently holding DOT price from further fall.
From technical analysis, we understand that a support level that has been tested multiple times is considered strong support. However, multiple tests also weaken the support.
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Show more +If Polkadot breaks below this crucial level, we could see a major dip as many trades may be liquidated at this zone that has acted as a strong accumulation zone in the past.
The RSI has also been bearish and trading below 50 for some months. It is currently at around 36 at the time of writing, suggesting that we could still see some price drop before reaching an oversold level.
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The price is also far below the 50-week simple moving average, which is serving as strong resistance to price growth.
Perhaps a major boost in the Ethereum ecosystem or a significant crypto rally could help Polkadot see some upward movement. However, it doesn’t look like an attractive crypto investment right now.
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