DOT remains to be bleeding because the bear market extends for yet one more week, with no signal of slowing down. This has particularly been the case within the final two days throughout which promoting volumes elevated after failing to bounce again.
Now the cryptocurrency is closing in on yet one more support and resistance stage close to $7, however the query is- Will it reverse or keep its bearish trajectory?
DOT traded at $8.11 on the time of this press, following a slight restoration inside the previous couple of hours after dipping as little as $7.30. Zooming out reveals that the $7 worth stage has traditionally acted as a support and resistance zone. There is a big chance that DOT could obtain some upside if the $7 worth stage supplies ample support.
There are quite a few causes for the expectation of a bounceback from support. The worth is already deep within the oversold zone as indicated by the RSI. The MFI has to this point registered heavy outflows that coincide with the present worth stage. The slight bullish restoration after coming into the support zone means that there was some accumulation however this has not registered within the MFI.
Some of DOT’s on-chain metrics are at present in favor of bullish restoration. For instance, provide held by whales registered a slight uptick within the final 24 hours, suggesting that whales are shopping for at low costs. The identical metric registered important outflows from whale addresses within the final 4 weeks.
The Binance derivatives funding fee plummeted between 9 May and 11 May, reflecting decreased curiosity within the derivatives market. However, the uptick within the final 24 hours means that the derivatives market is taking on an curiosity in DOT on the lower cost ranges.
Is there a danger of extra draw back?
The lack of a big uptick within the MFI and RSI regardless of being deeply oversold displays the shortage of sufficient shopping for strain. This is because of the low investor confidence because the market struggles to shake off the FUD. As a end result, the bears have maintained a stronghold on DOT’s worth motion.
The relentless sell-off that has prevailed in the previous couple of days should proceed, nicely into the weekend. If that would be the final result, then there’s a important chance that DOT will drop to $5 or decrease.