Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
- Bears sink DOT to March swing lows.
- Funding charges stayed optimistic to supply bulls hope for a reversal.
Polkadot’s [DOT] month-long decline has seen the coin lose 25.8% of its worth. The crypto market’s latest correction accelerated DOT’s losses with a 9% drop over the previous seven days.
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With Bitcoin’s [BTC] pullback to the $26k vary, sellers maximized the chance to push Polkadot to its March swing low of $5.2. T
his value space has twice initiated a value rally in January and March. Can bulls defend the assist and push ahead as soon as once more?
Is one other value rally from the $5.2 assist degree doable?
Supply: DOT/USDT on Buying and selling View
Earlier in mid-February, DOT skilled a major downward pattern that was halted by the bullish order block on the $5.2 assist degree. A recurrence of the identical value motion in mid-April has taken DOT again to the important assist degree.
A take a look at the worth on the 12-hour timeframe noticed DOT publish two successive bearish candles with the second candle closing barely above the assist degree. This steered long-term sentiment nonetheless favored the bearish motion.
Nevertheless, a drop-down to the four-hour timeframe confirmed consumers’ makes an attempt at a value rally with two successive bullish candles.
Technical indicators remained in alignment with the downward pattern. The RSI indicator stayed below impartial 50 with a studying of 33.2, as of press time. The OBV additionally mirrored DOT’s declining day by day buying and selling quantity.
A mid-term restoration plan for bulls will contain a four-hour candle shut above the $5.2 assist degree, adopted by a 12-hour shut above the identical degree. This might result in a rally to the $6.1 value vary.
On the flip facet, a bearish candle shut on both timeframe under the assist degree and bullish order block will sign extra promoting alternatives. Shorts can then goal the December low of $4.2.
How a lot are 1,10,100 DOTs value at the moment?
Shorts retained dominance within the futures market
Supply: Coinglass
The liquidation knowledge for DOT over a three-month interval confirmed that the markets weren’t but priced in for a bullish reversal.
Longs have taken probably the most hits with giant spikes in liquidated positions. Moreover, knowledge from Coinglass confirmed that $2.29 million value of lengthy positions had been liquidated over the previous 5 days. This represented 92% of complete liquidations.
Nevertheless, the funding charges stayed optimistic to sign a glimmer of hope for bulls. DOT’s correlation with BTC might decide its subsequent transfer. A rally for the king coin will supply bulls a singular reversal alternative once more from the $5.2 assist degree.
Supply: Coinalyze
