Dot [DOT] has just concluded one of the crypto market’s most volatile weeks with a renewed support test near the USD 7 price level. This strong support has so far prevented DOT from seeking as many drawbacks as most top cryptocurrencies.
DOT is among the top cryptocurrencies with the lowest weekly loss. It was trading at $7.18 at the time of writing, having gained 5.71% in the past 24 hours, bringing its weekly loss to 6.71%. However, this is a small drop compared to other top cryptos, some of which have lost more than 20% in the last 7 days.
The price of DOT has been consolidating near the USD 7 price level for the past few days. This is within the same territory as the previous bottom during the May crash. This means that the same support line has held up well with little pressure to push the price lower.
Source: TradingView
One possible reason why the support level seems so strong is that there has been a notable surge in accumulation near the same level.
DOT’s RSI highlighted the lack of selling pressure within the support range. The same level also acted as an accumulation zone as the price moved into the oversold zone on Monday.
Limited by low buying pressure and yet…
DOT has so far been able to lead only slightly upwards due to the prevailing market conditions. While it does not appear to have experienced significant selling pressure, it also failed to build enough buying pressure to support strong upside potential.
Despite this, whales are rallying near the $7 support level as evidenced by whale supply. It rose from 44.45% on June 16 to 44.91% at press time.
Source: Santiment
The price of DOT also registered a significant uptrend in the past two days, as well as a volume increase in the same time. This corresponds to the accumulation near support.
However, bearish market conditions may have limited upside potential due to the elevated FUD levels.
Conclusion
DOT’s strong support is a healthy sign of the predominant investor sentiment regarding the current price level. It can also provide a slope for the price to bounce on. However, this does not guarantee that the market will not experience more selling pressure in the coming days, potentially leading to more downward pressure.
This post Dot [DOT] – What to expect now that the $7 level is being retested?
was published first on https://ambcrypto.com/polkadot-dot-what-to-expect-now-that-the-7-level-is-re-tested-once-again/
