Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- The worth of Polkadot approached a help zone that would provide a shopping for alternative.
- DOT is prone to carry out effectively over the following week, supplied Bitcoin can push above $21.6k.
Polkadot [DOT] shot previous the $5 resistance stage final week when Bitcoin [BTC] broke above the $17.6k mark. DOT continued to have a bullish outlook on the upper timeframes. Each the market construction and the momentum favored the patrons on the each day timeframe.
Learn Polkadot’s [DOT] Worth Prediction 2023-24
Polkadot noticed some bullish enthusiasm evaporate over the previous week after the pullback from $6. Nevertheless, the retest of $5.6 as help may have a big bullish response within the days to come back.
Polkadot sweeps liquidity above the $6 mark earlier than pullback however is ripe for an additional transfer upward
The $5 stage was a psychological space of significance for merchants, as a transfer above this stage meant that the bulls had been in management. The realm of liquidity highlighted in pink served as help in mid-December and was later flipped to resistance. An encouraging issue for bulls was the sharp transfer past the $5 resistance on 11 January.
The next week noticed DOT climb additional greater to succeed in resistance at $6.06. A swing excessive at $6.52 was fashioned, which probably indicated that early quick positions had been worn out on the transfer upward to seize liquidity.
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On 5 December, the value climbed to $5.68, and thereafter, promoting strain took management. Bears drove the costs as little as $4.2 in late December. Latest worth motion noticed the identical stage retested as help. This meant that there was a powerful probability of a surge northward for Polkadot.
The RSI dropped from the overbought territory however continued to point out bullish momentum. The OBV additionally took successful, however most features from January had been intact.
Massive liquidations final weekend indicated liquidity seize is a sound thought
14 January noticed the liquidation of $5.1 million Polkadot quick positions. This was when the value climbed to $6.52 earlier than it met a wall of promoting. In latest days, nonetheless, vital numbers of lengthy positions didn’t see liquidations, with 18 January seeing $500k longs liquidated.
Up to now few days, the Open Curiosity has declined alongside the value which confirmed bearish sentiment. An increase in OI is prone to accompany the following rally. The funding fee remained optimistic, which instructed the potential of extra upside.