Polkadot [DOT] consolidates near key support – is a reversal imminent?

DOT bulls held onto key $5.2 support level. However declining volume could see the support level cave to selling pressure.

climbing to $27k could spur some bullish momentum for DOT with bulls defending the $5.2 support level over the past seven days.DOT’s market structure remained bearish on the daily and 12-hour timeframes. The sharp drop in mid-February saw DOT break through the $7 and $6 support levels. However, the $5.2 support level held steady and bulls rallied back to the $7 price zone.

The new resistance level at $7 halted the bullish rally along with the bearish order block under it. This pushed the altcoin back toward the $5.2 support level again. Although the support level remained steady at press time, sellers seem to be edging towards a break of the level. DOT posted three bearish candles in a row on the 12-hour timeframe to signal increased selling pressure.

With the On Balance Volume recording a dip in volume and the Relative Strength Index hovering around the oversold zone, it indicated eased buying pressure and more outflows. This signaled that near-term sellers had a slight advantage. A 12-hour candle close below the $5.2 support will see bears aim for the January low of $4.2.

On the flip side, if the $5.2 support level holds again, bulls will make another approach for the $6 resistance in the near term and $7 in the long term.

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