On the 15th of June, DOT/USD was trading near the 26.0000 juncture, but since then an incremental move lower has eroded value. Polkadot is now challenging critical mid-tem support levels and, as of this writing, is within the vicinity of 15.6500. On the 23rd of May, as the broad cryptocurrency market took an enormous hit, DOT/USD traded briefly near the 13.5000 mark. Within ten days after hitting that lower juncture, DOT/USD was challenging the 28.5000 ratio.
However, the bearish sentiment which continues to puncture important support levels appears to have sharp teeth. Bullish speculators who believe there are profits to be made from buying positions may be stepping into strong headwinds. If a trader sincerely believes the price of DOT/USD is cheap at this current time, they may want to buy the cryptocurrency, but the trend downwards may not be finished.
Trading within DOT/USD has produced harsh volatility in the past week. If the 16.0000 level proves to be strong resistance and and prices are sustained beneath this level, bearish traders may logically begin to target the 15.5000 to 15.2000 support junctures. If these junctures prove fragile and the May 23rd prices begin to see a legitimate test, DOT/USD may be in for additional selling pressure.
The 15.0000 price level could prove to be a huge psychological barrier for DOT/USD. The last time Polkadot traded within these values in a prolonged manner was in early January. The fall in value of DOT/USD has been large. On the 14th of May, Polkadot was trading a hair below the 50.0000 mark. The loss of value within DOT/USD needs to be considered by speculators and kept as a reminder regarding the amount of volatility the cryptocurrency can produce.
Although DOT/USD may appear rather undervalued at its current values, the bearish trend is showing little indication that it will suddenly reverse with any sustained momentum in the short term. Speculators who want to wager on additional selling momentum may be making the correct wager. The 15.5000 to 15.2000 support levels should be watched carefully in the short term; if they begin to see a test and trading volumes within DOT/USD remain underwhelming, it may be a strong indication that further bearish traction may be coming.
Polkadot Short-Term Outlook:
Current Resistance: 16.7000
Current Support: 15.5000
High Target: 17.3800
Low Target: 13.7000
