Polkadot (DOT) Plummets Over 10% as COVID Variant Fears Intensify

Polkadot (DOT) plunged over 11% during Friday amid fears around the new Covid variant, Omicron, as Europe reported its first case in Belgium.

The cryptocurrency followed the bloodbath seen in the rest of the sphere as a result of the risk-off sentiment triggered, which also hit the traditional markets such as forex and stocks.

Bears Are on Fire

The DeFi altcoin cracked below a critical support zone at $38 after a stagnation period. Also, the 50-period simple moving average provided additional bearish momentum that led the crypto to continue strengthening its current stance.

The resistance level of $44.00 has proven to be a tough nut to crack, and today’s turmoil didn’t help lift the prices to pierce it.

Prior to Black Friday in crypto markets, DOT broke below the 200-period simple moving average at the H4 chart and fueled the bears on their efforts to lead the coin to the south. Now, an impulsive structure has been developed in Polkadot, and it’s poised to keep falling across the board.

Eyeing $30?

Once DOT pierces below the psychological area of $34, eyes will be on the critical hurdle of $30, which could bolster the sellers even more ahead of the year-end and strengthen the death crossover of the moving averages.

However, as the RSI indicator is hovering around the oversold territory, Polkadot could be near to bottom at this stage. That’s why a corrective rebound is on the cards, with a first hurdle to overcome around the 50 SMA at $40.

If the crypto breaks above that area, DOT could strengthen further to rally towards the 200 SMA at around the $45 level. However, it shall not discard the bearish picture yet, as such a move is just a 50% corrective move of the decline from the highs of November 4. DOT should then break above $50 to put bears in danger.