Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
- Polkadot (DOT) has discovered new help at $5.0
- Unfavorable sentiment may undermine efficient worth restoration
After breaking previous a number of helps, Polkadot (DOT) lastly discovered a relaxed zone at $5.0. At press time, DOT was buying and selling at $5.38, up 5% within the final 24 hours. The hike corresponded with BTC’s restoration of the $16k-level.
Learn Polkadot’s [DOT] Value Prediction 2023-24
Regardless of the worth restoration at press time, nonetheless, the market construction was nonetheless weak. Subsequently, DOT may proceed to fall to its new help at $4.4.
New help at $5; will it maintain?
DOT registered a powerful rally between October and November, ending with an ATH of $7.42. Nevertheless, bearish sentiment following the FTX implosion despatched the asset crashing.
It discovered a help zone at $5.4, from which the bulls tried two worth recoveries. Nevertheless, the 2 restoration makes an attempt led to a bearish order block across the 23.6% Fib degree ($5.58). A worth correction after the second restoration try fell beneath the earlier help, turning DOT right into a bearish market construction.
At press time, DOT was on the verge of a rally to interrupt the $5.3-level. Nevertheless, the present bearish market construction may push the worth in direction of $5 or as little as $4.44 within the coming days or even weeks. The Relative Energy Index (RSI) was at 38, displaying that sellers have leverage.
On-balance quantity has additionally hit a sequence of lows since mid-September. Ergo, each present that the market continues to be weak, favoring sellers.
Nevertheless, the bearish bias will likely be invalidated if DOT breaks the 23.6% Fib retracement degree ($5.58) on the intraday shut. On this case, the brand new resistance goal of DOT could be the bearish order block zone across the 38.2% Fib retracement degree.
Unfavorable sentiment and declining improvement exercise
In line with Santiment, DOT’s improvement exercise bottomed out on 7 November earlier than rebounding by mid-November. It declined steadily thereafter, with a steep downward pattern on the time of writing. Curiously, the worth motion adopted improvement exercise to a big extent.
Furthermore, the general weighted sentiment was in damaging territory at press time. Given the decline in buying and selling quantity as DOT’s worth rises, the price-volume divergence could undermine robust shopping for stress. This might level to a doable worth decline or a deeper plunge.
If BTC holds $16,000 or breaks by $17,000, DOT may proceed its ongoing rally. Nevertheless, the price-volume divergence and damaging sentiment may undermine any vital shopping for stress that might flip the present market construction into an uptrend.
Lengthy-term traders of DOT ought to subsequently be cautious and monitor BTC, market sentiment, and improvement exercise of the asset.