The Polkadot (DOT) price has broken down from a long-term resistance level but is trading inside a short-term bullish pattern.
The Polkadot price has decreased underneath a descending resistance line since reaching an all-time high of $55.1 on Nov. 2021. The downward movement led to a minimum price of $5 in Nov. 2022. This caused a breakdown from the long-term support area at $6.
It is worth mentioning that the weekly RSI fell to an all-time low in July 2022 and has now generated bullish divergence (green line). If the divergence catalyzes an upward movement and breaks out from the $6 area, that would be considered an extremely bullish sign for Polkadot.
Besides confirming the current breakdown as a deviation, it would also cause a breakout from the descending resistance line, which coincides with the $6 area.
However, if the decrease continues, the next closest support area will be at $3.90.
Therefore, whether the DOT price…
