Cryptocurrency

Why Polkadot intraday traders can look for shorting opportunities

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.

USDT Dominance is a metric of the share of the crypto market cap held by USDT. In the previous two weeks, this metric was in an uptrend. This confirmed market individuals more and more selecting to carry the USDT stablecoin reasonably than any crypto asset, and highlighted durations of promoting strain.

Polkadot has additionally seen sturdy bearish momentum in latest days because it crashed by means of one other assist zone on the value charts.

DOT- 12-Hour Chart

Source: DOT/USDT on TradingView

On the 12-hour chart, there have been many ranges that had served as assist previously three months that have been finally flipped to resistance.

The most vital zones of assist have been highlighted by the pink field. The $9.5 zone was an space that the bulls completely wanted to push previous. The $10 psychological degree was simply overhead, and the $10.57 technical degree was solely barely additional north.

After the sudden plummet in early May, DOT patrons desperately tried to defend the $9.5 area. However, June introduced extra worry with it and the bulls have been quickly overwhelmed. Thereafter, the value sank to the $6.6 mark, the place it tried to bounce again a number of occasions.

The most profitable of those makes an attempt managed a rally to $9.68. Although it measured 43% in magnitude, it was nonetheless a failed rally because it did not flip the longer-term market construction to bullish.

In latest weeks, the value fell beneath the $6.6 space as properly, and on the time of writing noticed a bounce from $6 to succeed in the previous assist area once more.

Hence, larger timeframe traders can look for shorting opportunities. Based on the Fibonacci extension ranges (yellow) a drop to $6 and even $4.94 might happen within the coming weeks.

Rationale

Polkadot tussles with $7 once again and sellers come out on top

Source: DOT/USDT on TradingView

The indicators confirmed a bearish image as properly. The RSI fell under impartial 50. Even through the surge to $9.6, the RSI was unable to push previous the 60 area and present sturdy bullish momentum on the H12 timeframe. The OBV additionally fell under a degree of assist.

The Directional Movement Index noticed the ADX (yellow) at 24.5 and -DI (pink) at 19.5. Hence the indicator additionally stood on the verge of displaying a powerful downtrend in progress.

Conclusion

Intraday traders can look for shorting opportunities behind Polkadot after an examination of the H12 timeframe confirmed a bearish bias. The promoting strain behind Bitcoin previously two weeks meant one other transfer downward was probably.

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