Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- The value of Polkadot approached a assist zone that would provide a shopping for alternative.
- DOT is more likely to carry out nicely over the subsequent week, offered 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] Price 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 assist might have a major bullish response within the days to return.
Polkadot sweeps liquidity above the $6 mark earlier than pullback however is ripe for an additional transfer upward
Supply: DOT/USDT on TradingView
The $5 stage was a psychological space of significance for merchants, as a transfer above this stage meant that the bulls have been in management. The realm of liquidity highlighted in crimson served as assist 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 achieve resistance at $6.06. A swing excessive at $6.52 was fashioned, which seemingly indicated that early quick positions have been worn out on the transfer upward to seize liquidity.
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On 5 December, the worth climbed to $5.68, and thereafter, promoting stress took management. Bears drove the costs as little as $4.2 in late December. Current value motion noticed the identical stage retested as assist. This meant that there was a powerful chance of a surge northward for Polkadot.
The RSI dropped from the overbought territory however continued to indicate bullish momentum. The OBV additionally took successful, however most beneficial properties from January have been intact.
Giant liquidations final weekend indicated liquidity seize is a legitimate thought
Supply: Coinalyze
14 January noticed the liquidation of $5.1 million Polkadot quick positions. This was when the worth climbed to $6.52 earlier than it met a wall of promoting. In current days, nevertheless, 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 worth which confirmed bearish sentiment. An increase in OI is more likely to accompany the subsequent rally. The funding fee remained optimistic, which urged the potential of extra upside.