Polkadot: Why you need to watch out for DOT’s move to $4.6

Posted: September 4, 2023

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

• Polkadot has a bearish construction throughout increased and decrease timeframe charts.
• A transfer to the $4.4-$4.6 area was doable however can be a possibility for short-sellers to re-enter the market.

Polkadot [DOT] noticed a bullish market construction break on the decrease timeframe just a few days in the past. Nonetheless, the bounce misplaced momentum at $4.8 and has since fallen beneath the $4.3 help. This confirmed that the short-term respite from promoting strain was a ruse.

Learn Polkadot’s [DOT] Worth Prediction 2023-24

The momentum was bearish as soon as extra, and the drop beneath $4.3 was an indication of intent from the sellers. The place is the subsequent increased timeframe help zone that the bulls can look to make a stand at?

The breach of the HTF bullish order block meant sellers had been within the driving seat

Supply: DOT/USDT on TradingView

On the 1-day chart, Polkadot stood at $4.28 on the time of writing. The $4.56 (dotted orange) highlighted a decrease excessive from the 4-hour chart, which was overwhelmed on Monday 28 August. Nonetheless, the bulls had been unable to maintain the transfer and the bears seized management on the $4.8 mark.

The $4.27 stage represented the low of the bullish order block on the 1-day chart. On Friday, 1 September, DOT closed a day by day session beneath it. This flipped the order block to a bearish breaker, and meant that short-selling alternatives may come up ought to DOT bounce towards the $4.4-$4.6 area.

The Fibonacci extension ranges confirmed that sub-$4 costs had been a powerful risk for Polkadot in This fall 2023. The 23.6%, 50%, and 61.8% extension ranges lie at $3.894, $3.495 and $3.317 respectively. Given the downtrend on the 1-day chart and the bearish market construction, it was doubtless that DOT would fall towards the $3.5 and $3.3 ranges within the coming months.

The market sentiment was in bearish favor- have issues modified?

Supply: Coinalyze

On 31 August, when DOT from $4.45 to $4.26, the Open Curiosity soared increased. This confirmed quick sellers getting into the market in massive numbers and signified intense short-term bearishness.

How a lot are 1, 10, or 100 DOT price right now?

Prior to now 48 hours, DOT registered a bounce shut to three% increased. But, the spot CVD has been in a downtrend throughout this time.

It was proof of continued promoting strain on the token and signaled the absence of robust patrons, which meant Polkadot was prone to drop decrease on the value chart.