Summary
• Polkadot/Tether (DOTUSDT) traded in a descending channel on 5-minute charts, failing to reclaim key resistance levels above $2.04.
• Momentum weakened as RSI dropped below 40 and MACD turned negative, signaling bearish bias.
• High volatility emerged after 03:00 UTC with a breakdown below $2.025, confirmed by a bearish engulfing pattern and expanding Bollinger Bands.
• Turnover surged past $2.5 million during the final 4 hours, aligning with price declines and highlighting distribution dynamics.
• Fibonacci retracement at $1.995 offered temporary support, but failed to trigger a reversal, suggesting further bearish potential.
Polkadot/Tether (DOTUSDT) opened at $2.047 on 12:00 ET − 1, reached a high of $2.053, and closed at $1.980 on 12:00 ET with a low of $1.966. The 24-hour notional turnover totaled approximately $1.25M with a volume of 1,907,569.43 DOT.
Structure & Formations
Price action on the 5-minute chart displayed a bearish continuation pattern within a descending channel, bounded by upper resistance at $2.04 and lower support at $1.98. A bearish engulfing pattern at the 05:00 ET session marked a potential reversal from prior resistance.
The price failed to hold above key Fibonacci retracement levels at $2.025 and $2.012, confirming a breakdown in bullish conviction.
Moving Averages
Short-term 5-minute averages (20/50) remained bearish, with the 50-period line pulling below the 20-period. On the daily chart, the 50-period moving average is currently above the 200-period, but the 24-hour decline has seen a pullback toward the 100-period line, where it may encounter further resistance or retest support.
MACD & RSI
Momentum indicators confirmed the bearish tone. The MACD turned negative and diverged from price during the 05:00–09:00 ET session, while RSI dropped below 40 and approached oversold territory in the final hours. This suggests short-term exhaustion in the bearish move but does not rule out further downward drift.
Bollinger Bands
Volatility expanded significantly after 03:00 UTC as the price broke below the lower band. This expansion often precedes consolidation or a continuation, depending on how buyers respond at key Fibonacci levels. The widening bands suggest increasing uncertainty and risk in the short term.
Volume & Turnover
Volume surged during the price breakdown, with turnover exceeding $2.5 million between 05:00–09:00 ET. The divergence between price and volume during the earlier part of the session (high volume without follow-through buying) indicates weak conviction from bullish traders. Recent volume aligns with price, signaling bearish confirmation.
While the price may find temporary stability near the $1.97–$1.98 support range, a retest of the $1.96 psychological level is possible. Investors should remain cautious for any divergence in momentum or unexpected strength in the next 24 hours.
Comments
No comments yet