Amid the latest drop, DOT showed signs of weakness after charting an impressive gain in the past month. However, the overall outlook remains bullish on the daily chart but will likely lose momentum soon.
Dot’s trend is still looking bullish from a short-term perspective as the price continued to increase amid steady volume inflow in the past week.
However, trading appeared to be reaching an exhaustion point as buying volume turned low since the price bounced off the $7.5 level last week. Rejecting $12 in the mid-week, it paused buying and lost grip. Looking at the daily chart, the price is currently weak following a 2% loss today.
The hourly chart suggests a potential sell as the bears slowly step back, although they are still facing hurdles at the key $10 level. If they mount pressure at this key level, the price may fall while it loses momentum.
Such a scenario could trigger a major retracement in the market…
