Polkadot: Reasons DOT’s latest dip could turn into a buying opportunity

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

• Polkadot pulls again to the 78.6% retracement stage
• Two decrease timeframe help zones to be careful for within the near-term

On decrease timeframes, Bitcoin [BTC] had a bearish outlook after its incapability to defend the $20k help zone. A drop under $19.2k would usher in additional promoting stress, whereas a transfer above $20.2k could recommend a restoration was on its method. Bitcoin’s worth growth would seemingly have a sturdy say within the path of Polkadot on the worth charts.

Here’s AMBCrypto’s Price Prediction for Polkadot [DOT] in 2022-23

Polkadot additionally had a decrease timeframe bearish momentum. However, it approached a area of sturdy help on the charts. A bullish response on this zone could ship DOT towards the $8 mark. In different information, Polkadot claimed that DOT, which was initially provided as a safety, has morphed into software program.

A pullback into a every day bullish order block- could the rally proceed?

From 21 October, Polkadot witnessed sizeable good points. This could be said contemplating DOT’s bounce from $5.73 on 20 October to $7.42 on 7 November, a transfer that measured practically 30%.

However, 8 November got here with a sharp retracement the place DOT moved southward to the $6.4 space. The $6.9-$7 decrease timeframe help was damaged, however the increased timeframe bias remained bullish. This was as a result of the $6.16 increased low of the rally was unbeaten but. Moreover, this stage has been a important stage of help since late September.

At $6.16, a bullish order block was noticed. There was a good probability that this space would see a optimistic response from the worth as a result of confluence with the $6.16 help stage.

Two units of Fibonacci retracement ranges (yellow and white) had been plotted. They had confluence at $7.72 and $8.2. With DOT retaining its increased timeframe bullish construction, it was seemingly that a transfer above $6.8 could propel DOT to $7.7 and $8.2.

The Relative Strength Index (RSI) remained above impartial 50 on the every day chart to indicate that momentum remained biased in favor of the patrons. Yet, the On-Balance Volume (OBV) didn’t see a surge in current days, which considerably undermined the concept of a sturdy rally for DOT up to now week.

Development exercise is on a downtrend, and weighted sentiment additionally down

Source: Santiment

Despite the rally from $5.7 in October, weighted sentiment has not been optimistic. This recommended a lack of appreciable optimistic engagement on social media, and could additionally level towards the dearth of hype round DOT in current days.

Development exercise was additionally in a downtrend however remained effectively above the July lows. The funding rate remained within the optimistic territory on some exchanges over the day prior to this, with Binance and Okex being the exceptions.

If DOT can climb previous $6.8 with a hefty buying quantity, a push additional north would grow to be extra credible. At the time of writing, the bearish sentiment behind Bitcoin in current hours could see the king put up additional losses, which in turn would drag DOT southward.