Polkadot price sets a new high for 2023 – Time to alter predictions?

Journalist

Posted: December 23, 2023

• Polkadot costs reached $8.58 on twenty second December earlier than slipping decrease.
• This was a brand new excessive for 2023 and the market construction supported the concept of one other rally.

Polkadot [DOT] gained 47% in December and has rallied 20% inside simply the previous two days primarily based on the costs at press time. The blockchain additionally noticed a serious enhance in its income, which pointed towards elevated utilization.

The current rally previous $7.9 meant DOT has registered a brand new excessive for 2023. The technical construction confirmed that additional value positive aspects have been seemingly after a minor step backward within the coming days.

The bearish order block was about to be damaged

Supply: DOT/USDT on TradingView

On the time of writing, DOT had closed a one-day buying and selling session above $7.9. Within the subsequent few days, a retest of the $7.2-$7.9 area may be anticipated. After that, the token will seemingly proceed its rally and push towards new highs.

The $7.2-$7.9 space represented a bearish order block on the one-day chart. The chart above was a three-day chart, which highlighted the robust bullish construction of DOT on the upper timeframe chart.

Furthermore, it additionally underlined the subsequent key resistance at $9.65. This degree was a excessive from August 2022.

Whether or not such a rally would happen this month or in January 2024 is unclear. The OBV has risen larger with out pause, and the RSI was at 75 to spotlight intense bullish momentum.

What does the decrease timeframe knowledge point out?

Supply: Hyblock

Costs are inevitably drawn to liquidity. Therefore, AMBCrypto analyzed the liquidation ranges to grasp the place DOT may transfer subsequent.

The Cumulative Liq Ranges Delta was nonetheless deep within the constructive territory even after the drop from $8.5 that commenced prior to now 12 hours.

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There have been massive liquidity pockets to the north in addition to the south. Given the constructive Delta, bulls are extra overleveraged, making searching their ranges a extra seemingly end result.

From the info above, AMBCrypto famous that there have been vital liquidation ranges until $6.93. Of word have been the $7.81, $7.5, and $7.3 ranges the place a reversal may additionally happen.

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