Polkadot [DOT] sees some respite arrive at $5, but can the bulls hold on?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion

  • The $5.07 stage has been beneath siege since 21 November.
  • Subsequent weak bounces off the stage confirmed bears may lastly break by way of to the south.

Polkadot consumers have been weak on the value charts and have been unable to successfully halt the march of the bears in current months. Once once more they skirmished for management of a significant stage close to the $5 mark.

Read Polkadot’s Price Prediction 2023-24

Polkadot remained well-liked on social media, going by Top Ten searches on LunarCrush. But that didn’t translate into bullish value motion. A transfer again above $5.3 would shift the DOT market construction on the 1-day chart to bullish but was unlikely based mostly on the proof at hand.

The formation of a breaker over the subsequent few days may give bears a possibility to brief DOT

Source: DOT/USDT on TradingView

At press time, Polkadot bulls battled exhausting to remain afloat above the $5 mark. It was a psychological stage of significance which additionally has confluence with an extended timeframe horizontal stage. If the value slides beneath this mark, the promoting wave may intensify and drag costs decrease nonetheless.

On 28 November, DOT fashioned a bullish order block close to the $5 mark. The transfer to $5.62 on 2 December underlined the significance of the $5.1-$5.3 space. A each day session shut beneath his zone would flip the market construction, to bearish. The order block would additionally turn into a bearish breaker.

This was a possible state of affairs based mostly on the indicators. The A/D noticed a pointy drop in November and has been flat since then. Meanwhile, the Awesome Oscillator confirmed bearish momentum, though it was weak.

Taken collectively the inference was that demand was scarce and promoting strain may slowly sink Polkadot costs. Hence, a transfer beneath $5 and a retest of the bearish breaker can be used to enter brief positions focusing on the subsequent excessive timeframe assist stage at $4.6. Invalidation of this concept can be a value transfer again above $5.3.

Futures markets indicated some bearish sentiment over the previous few days

Polkadot sees some respite arrive at $5 but can the bulls hold on?

Source: Coinglass

The Open Interest behind DOT contracts in opposition to USDT shriveled up drastically from 8 November onwards on Binance. It picked up once more on 24 November, and regularly trended upward until 11 December. During this time, Polkadot oscillated between $5.7 and $5.1.

DOT had a negative funding rate on Binance. The previous couple of days noticed the OI drop whereas the value stayed between $5.07 and $5.19. Until the OI rises alongside a DOT rally, the indication can be discouraged longs and bearish sentiment.

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