Cryptocurrency

Polkadot [DOT] yields some upside after a bearish run: Here’s what to look out for

DOT delivered a wholesome 6.5% uptick on 1 May after concluding a bearish month in April, which ended with an prolonged draw back. The uptick could be a signal that DOT is prepared to ship a wholesome restoration rally. However, its present efficiency means that it’s nonetheless being held again by the prevailing uncertainty.

DOT is presently at $15.23 and is down by 36% from its April excessive, which implies it’s buying and selling at a wholesome low cost. This makes it a candidate for a wholesome rally and from the seems to be of issues, there was vital accumulation after dipping to $14.18 which was its lowest level in April.

Source: TradingView

The Fibonacci retracement traces spotlight value ranges to watch out for throughout a wholesome topside bounce again. They embrace $16.57 which sits on the 0.236 Fibonacci line, $17.9 which aligns with the 0.382 Fibonacci line, and $19.16 which aligns with the 0.5 Fibonacci line.

The expectations of a bounce-back are supported by the temporary dip into the oversold zone in accordance to the RSI. It can also be backed by some accumulation at its latest low. The DMI highlights the present uncertainty as to whether or not DOT Sunday’s uptick was the beginning of a bullish wave or a pause in its bearish endeavor.

1651548194 76 Polkadot DOT yields some upside after a bearish run Heres

Source: TradingView

A foggy path forward

DOT’s value route uncertainty additionally extends to its on-chain metrics. The whole provide held by whales metric is presently at its lowest level within the final 4 weeks. It has not yielded a slight uptick to this point, suggesting that whales should not but shopping for.

The Binance derivatives funding price can also be at its four-week low, and collectively these metrics level towards the dearth of investor confidence available in the market.

1651548194 831 Polkadot DOT yields some upside after a bearish run Heres

Source: Santiment

Conclusion

DOT’s skill to ship a bullish rally within the subsequent few days will depend on the prevailing market situation. Unfortunately, concern and uncertainty are presently holding it again and this will enhance the probabilities of some extra draw back. On the opposite hand, accumulation at cheaper price ranges could restrict the severity of any potential draw back.

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