Can Polkadot overcome the $5.8 resistance?

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

• The decrease timeframe value motion of Polkadot had a bullish bias.
• The sturdy resistance ranges overhead meant a decisive breakthrough may take some time to materialize.

World buyers are awaiting the following launch of the US CPI information on 12 July. This meant that crypto asset costs may see heightened volatility within the quick time period as buyers and merchants race to digest and value the information. Equally, Polkadot [DOT] approached a vital resistance degree in latest hours.

Practical or not, right here’s DOT’s market cap in BTC’s phrases

Polkadot noticed many optimistic developments in Q2 2023. Nevertheless, regardless of the rally in June, the upper timeframe market construction was not but bullish. What can merchants and buyers be careful for within the coming days?

A big resistance zone lies overhead

Supply: DOT/USDT on TradingView

The 4-hour chart confirmed the worth motion of DOT was bullish previously two weeks. The CMF was properly above +0.05 to spotlight sturdy capital influx to the Polkadot market. The RSI additionally flipped impartial 50 to assist on 11 July and continued to push larger. This was an indication of bullish momentum.

One other signal of bullish momentum will be seen on the worth motion itself. After dropping to the $5 degree on 7 July, DOT consolidated there until 10 July earlier than climbing again to the short-term resistance at $5.22.

On the time of writing, Polkadot was buying and selling simply above that degree, which underlined bullish intent. But, all the area from $5.2-$5.8 is lined with bearish fortifications. The value motion from 8 Could confirmed that this area was defended by the bulls for nearly a month earlier than the bears lastly gained the battle.

Therefore, on the way in which upward, the $5.22, $5.45 and $5.56 ranges will probably supply vital resistance. The $5.74-$5.81 zone was additionally a resistance from late April. The bulls can have a variety of heavy lifting to do to push costs previous the sellers.

The positively sloped spot CVD might be encouraging for DOT consumers

Supply: Coinalyze

The 1-hour chart from Coinalyze confirmed that the Open curiosity was slowly rising since 7 July. It did see giant retracements, although, just like the one on 10 July.

How a lot are 1,10,100 DOTs price at this time?

The inference was that speculators didn’t collectively possess bullish enthusiasm, however because the OI limped larger, there was a gentle capital circulate inward.

The spot CVD has additionally risen since 10 July. If the consumers can maintain the demand, it’s doable that DOT can climb above the resistance ranges above it. But, it’s extra probably that the bullish advance within the coming days might be a gradual conflict of attrition than a blitzkrieg.