News Polkadot Price Analysis and Forecast (February 1) – DOT adjusts amid market decline, down 6% in a week

Polkadot has seen notable gains this month and similarly broke out of a downtrend channel that lasted seven months of price action. It fell after hitting a 3-month high and is now looking for a solid bounce.

The much-anticipated correction appears to be in play following the recent sharp drop across the cryptocurrency market.

Less than a month into the new year, the price of Polkadot is up more than 60%, hitting a multi-month high of $6.84. It rejected that level and traded just below last week’s support at $6 yesterday.

It recovered slightly and is currently trading near the aforementioned support. The previous daily candles represent significant losses that have occurred since the month opened. Things could get even bigger today as sellers add to their positions, leading to higher volumes.

However, if the bearish scenario comes into play, it will put a halt to the positive sentiment of the past few weeks. The only condition for continued bullishness at the moment is buybacks and a breakout of previous highs.

Otherwise, there could be a massive sell-off in the next few hours as today’s monthly trading rolls up.

Markets have shown a sustainable recovery throughout the month, and more can be expected once the cryptocurrency finds solid rebound support.

Key Polkadot levels to watch out for

After the price fell below the hourly support at $6.3 to a low of $6 during yesterday’s decline, DOT rejected that level and looked for supply levels to initiate another decline.

Support levels to consider are $5.68 and $5 – resistance levels for a retest of the channel. Beyond these supports, the $4.6 and $4.23 levels are next to keep in mind.

If there is a buyback and breakout above $6.66, the forward resistance is at $7.4, with $8 likely in the future.

Key Resistance Levels: $6.66, $7.4, $8

Key Support Levels: $5.68, $5, $4.6

• Spot price: $6.2
• trend: bullish
• volatility: ease

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any project.

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