Journalist
- Polkadot might see a barely deeper value drop earlier than restoration.
- The upper timeframe momentum was shifting bearishly as costs retested a help stage.
Polkadot [DOT] achieved a bullish market construction break on Saturday, the twenty fourth of August, however has retraced the transfer totally. It was buying and selling simply above the $4.22 help stage that it had retested two weeks in the past.
A latest report famous that the $4 area was a psychological help zone. Will Polkadot costs fall to $4 earlier than a restoration, or ought to merchants anticipate a bounce from $4.22?
Ought to merchants be bearish or bullish?
Supply: DOT/USDT on TradingView
The market construction on the day by day chart was bullish. The $4.22 stage has served as help up to now two weeks and is probably going to take action once more, which might see DOT boosted to the native highs at $5. This might result in a variety formation.
But, the technical indicators confirmed some bearishness on the 12-hour timeframe. The MACD fashioned a bearish crossover to sign momentum was shifting, and the OBV noticed a rejection close to the highs from earlier this month.
Nonetheless, the OBV didn’t sink too deep, that means that merchants needn’t anticipate a transfer towards $3.6 subsequent.
A revisit to this stage is perhaps required earlier than restoration
The value evaluation confirmed that DOT may very well be forming a short-term backside. But, the $4.22 stage is perhaps damaged, no less than briefly, in line with AMBCrypto’s evaluation of the liquidation heatmap.
Learn Polkadot’s [DOT] Worth Prediction 2024-25
There was a dense cluster of liquidation ranges at $4.11 that might appeal to costs to it earlier than a reversal.
Due to this fact, swing merchants can search for shopping for alternatives at $4.05-$4.11 concentrating on a reversal to $5.17, the subsequent liquidity pool to the north.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion