Polkadot: Watch out for these levels before placing long bets

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Polkadot’s [DOT] efforts to alter the long-term bearish trend took a toll after an expected rising wedge breakdown. The $9.4-$9.6 resistance range rekindled the selling inclinations.

Also, this bearish pull has invoked a bearish crossover on the 20/50/200 EMA. Any rebound from the $7 zone could help the alt ease the selling pressure. At press time, DOT was trading at $7.46, down by 11.96% in the last 24 hours.

Source: TradingView, DOT/USDT

Since dropping toward its 18-month low on 13 July, DOT buyers stepped in to propel a bull run. This recovery entailed a rising wedge that slammed into the $9.6-resistance.

The resultant breakdown pulled the coin below its 20/50/200 EMA while registering an over 24% decline over the last week. Also, with the recent uptick in selling volumes, the bears have only reiterated their intentions of undermining the near-term buying edge.

Given the possibility of a bounce-back from the $7-mark support zone, DOT could recuperate its buying pressure in the coming sessions. In such a case, traders/investors need to look for a close above the $7.5 mark.

Potential targets would lie near the $8-$8.3 range. An inability to break above the $7.5 level could provoke a dull phase on the chart.

Rationale

Source: TradingView, DOT/USDT

The Relative Strength Index (RSI) plunged deep into the oversold region after declining below the 30-mark threshold. A potential revival in the coming days could give the buyers a much-needed push to test the $8 zone.

The -DI saw an exponential jump as it exhibited a visible bearish edge. The current overstretched readings hint at a plausible near-term