$15.86 or $17.54? Can DOT traders expect to see demand in the next week
Disclaimer: The findings of this evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.
Within the hours previous to the time of writing, Bitcoin rallied sharply from $34.8k to $39k – however was unable to breach this resistance degree regardless of pushing as far north as $39.8k. Following in its footsteps, Polkadot additionally noticed a aid rally from the native lows at $14.2 and was buying and selling at $16.08 throughout press time. Nevertheless, the market construction remained bearish for Polkadot within the close to time period. Therefore, shorting alternatives might current themselves, whereas a session shut above $17.54 may current a shift in bias towards bullish.
The short-term vary that DOT was buying and selling inside about two weeks in the past (orange) didn’t maintain, and the vary lows have been flipped from assist to resistance every week in the past. Since then, DOT has registered a sequence of decrease highs and decrease lows on the charts.
Furthermore, the value has examined the $16.6-$17.4 space a number of occasions to attempt to break above, however sellers have remained sturdy. This advised that DOT’s transfer upward from $14.2 was possible solely a transfer searching for liquidity earlier than its subsequent leg downward.
The Fibonacci retracement ranges based mostly on DOT’s transfer from $23.19 to $15.8 offered the 27.2% and 61.8% extension ranges at $13.79 and $11.23. Additionally, the $15.86 has acted as assist up to now few hours.
The RSI rose above impartial 50, whereas the Superior Oscillator additionally surged above the zero line up to now few hours. This was in response to DOT’s practically 15% positive factors in simply over twelve hours. The OBV additionally noticed a spike upward, however the downtrend on the OBV made it clear that promoting quantity has been dominant in current weeks.
The symptoms confirmed some response to the current bounce for DOT, however the market construction remained bearish. A transfer to the $17.2 space may current a shorting alternative. Equally, if the value falls under $15.86 as soon as once more, getting into quick positions on DOT could also be thought of, concentrating on the $13.79 Fibonacci extension degree. Alternatively, if DOT managed to reclaim $17.54 over the subsequent few days, the potential for a shift in momentum from bearish to bullish would come up.