What to know before trading Polkadot today: Revolut adds DOT to its list of offers
It’s a bearish start to the day for Ethereum Killer Polkadot (DOT) on Thursday, as it slides down to test the key $ 15 level. At the time of writing, DOT / USD is trading around $ 15.
Cryptocurrency is on the decline, affected by the somewhat pessimistic mood in the overall crypto market. The risky mood affecting global financial markets has put pressure on digital assets, as traders worry about the resurgence of COVID-19 infections around the world due to the highly contagious delta variant. This has driven the US dollar higher in recent sessions, making the DOT / USD pair bearish although it also affects investor sentiment towards most cryptocurrencies in general.
Analysts remain bearish on the outlook for market leader Bitcoin, due to uncertainties in financial markets as well as regulations in the crypto industry. Leading investment bank JPMorgan Chase lowered its target for BTC, predicting it could drop to $ 23,000, which could signal further decline for Polkadot and other digital currencies in the near term.
On a positive note, however, DOT losses could be limited compared to reports that UK-based leading fintech app Revolut has added Polkadot to its list of offerings. This will allow its more than 15 million customers to buy, redeem, and hold DOT tokens once they update their apps.
Key levels to watch
The moving averages as well as the MACD leading technical indicator suggest a bearish bias in the DOT / USD 4-hour chart at the moment, while the momentum indicator indicates a bullish mood. Additionally, the price is also holding just below the pivot point at around $ 16, indicating selling pressure.
In case the sentiment turns, we could see the buyers take the price beyond the pivot to test resistance at around $ 19. A breakout above opens the door to $ 25, but not before more resistance at $ 24.
On the other hand, further bearish pressure may cause the price of Polkadot to drop to test the support at $ 11. A breakdown of this level can push the DOT / USD all the way below the $ 10 level to the next support at $ 8.