Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
- DOT weakened additional after it dropped under $4 and did not reclaim it.
- DOT short-sellers had extra market affect at press time.
Polkadot [DOT] posted extra losses in early October because the bearish stress persevered. Notably, the token shed over +10% between 2 October and press time’s worth of $3.85.
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In the meantime, Bitcoin [BTC] defended the $27k however was but to rebound strongly forward of the September CPI knowledge launch on Thursday (12 October).
In a earlier DOT worth evaluation, AMBCrypto projected a doable break above $4 if the $3.9 assist is defended. However the assist was cracked as DOT’s decrease timeframe merchants can anticipate this.
Will sellers prolong good points?
Supply: DOT/USDT on TradingView
The prolonged drop under $4 shaped a every day bearish order (OB) of $3.998 – $4.094 (orange). Above it lays one other hurdle and a beforehand invalidated weekly bullish OB (pink).
On the every day chart, DOT has been making decrease highs since mid-August. The every day and H4 market constructions have been each bearish at press time, additional cementing sellers’ market affect.
So, a BTC rebound in the direction of $28k may tip DOT to mount above $3.9 however falter on the subsequent roadblock at $4.0. So, if the bearish stress persists, sellers may prolong good points to $3.6 by utilizing $3.9 and $4.0 hurdles for re-entry.
A profitable mount above the roadblock at $4.0 will flip the H4 market construction to bullish and will enable bulls to give attention to the $4.3 goal.
In the meantime, DOT’s Spot market demand declined massively from 2 October, as proven by retreating OBV. The destructive RSI additional confirmed the promoting stress as bearish stress persevered.
Polkadot sellers had market leverage
Supply: Coinalyze
The southward motion of the CVD Spot (Cumulative Quantity Delta) additional confirmed that sellers have extra market affect at press time. The metric had no reversal by the point of writing, so sellers may overwhelm the market.
How a lot are 1,10,100 DOTs price right this moment?
However, the Open Rates of interest spiked as DOT costs declined from 2 October. It meant that extra gamers opened contracts to cowl brief positions and revenue from the value drop.
So, sellers may prolong their affect in DOT’s market except BTC surges past $28k.
