Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- DOT’s price action graced a crucial demand zone near $4.5.
- Liquidation data discouraged longs, but shorts suffered, too.
Polkadot [DOT] was at a significant discount and long-term support level for buying opportunities. But a corrective rebound remained elusive, which could unnerve impatient bulls.
Is your portfolio green? Check out the DOT Profit Calculator
DOT traded at $4.43 at the time of writing. The level was an extension of its range formation ($4.0 – $4.55) since 18 August. However, the range formation coincided with a crucial long-term support and weekly bullish order block (OB).
What’s next after the consolidation?
The demand zone is a weekly bullish OB of $4.22 – $4.59 (cyan) and doubled up as January and December lows. The Q1 rally bounced from the above level, and a similar trend was observed during the June recovery.
But another August retest was yet to record a solid corrective rebound from the demand zone. A price consolidation has extended for over a week without signs of a price reversal.
However, the CMF fluctuated above zero, underscoring weak but positive capital inflows. The RSI also attempted to retreat from the oversold zone, demonstrating mild buying pressure, yet sellers had overall control.
So, DOT could shoot to $5 or $5.2 in the next few days/weeks, especially if Bitcoin [BTC] surges above $26.8k and $27k. But the bulls must clear the $4.8 t
Go to Source to See Full Article
Author: Benjamin Njiri
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
