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Summary
• Price action formed bearish divergence with volume during late ET sell-off.
• Key support at 2.06–2.07 and resistance near 2.105 marked turning points.
• Bollinger Bands contracted midday, signaling potential volatility expansion.
• MACD turned negative post-09:00 ET, confirming short-term bear momentum.
• High volume spikes coincided with intraday pullbacks, suggesting order block accumulation.
Market Overview
Polkadot/Tether (DOTUSDT) opened at $2.106 at 12:00 ET - 1, reached a high of $2.153, a low of $2.044, and closed at $2.089 at 12:00 ET. The 24-hour trading volume was 1.34 million DOT and notional turnover of $2.78 million, showing moderate liquidity.
Price Structure and Candlestick Patterns
Price action revealed a bearish trend following a key break below the 2.10–2.12 consolidation range, with bearish engulfing patterns forming around 2.12–2.125 and 2.095–2.10. A doji appeared near 2.063, hinting at temporary indecision. Key support levels held at 2.06 and 2.07, suggesting short-term buyers may defend these levels.

Moving Averages and MACD
On the 5-minute chart, the 20-period MA crossed below the 50-period MA (death cross) around 08:45 ET, reinforcing bearish momentum. The MACD histogram expanded in negative territory after 09:00 ET, indicating sustained selling pressure. Daily 50/200 MA alignment remains neutral, with price hovering above both.
Volatility and Volume Analysis
Bollinger Bands showed a noticeable contraction between 04:00 and 06:00 ET, followed by a break and expansion after price retested support. Volume surged during key pullbacks in the early hours and again post 14:00 ET, aligning with price rejection near 2.05–2.06. Notional turnover spiked in line with volume, suggesting genuine buying at these levels.
Risk and Outlook
The next 24 hours may see a test of 2.06 as a key support, with a break likely leading to further downside. A rally to 2.105 could meet resistance, where traders should watch for a bearish continuation or reversal. Investors should remain cautious, as divergence between price and volume suggests potential for a sharp move in either direction.
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