Polkadot’s latest move raises these shorting Qs

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

• DOT was bullish on a 4-hour timeframe. 
• A bearish zone strains up with the vary excessive.

Polkadot [DOT] has been in value consolidation for many of Could, oscillating between $5.19 – $5.49. Previously few days, value motion eased on the vary low of $5.2, however rallied and closed above the mid-range of $5.3. 

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

Within the meantime, Bitcoin [BTC] reclaimed $27k; nonetheless, it’s but to be seen if it’ll keep maintain of this value zone. If BTC falters, particularly at $27.8k, DOT may waver too and inflict a development reversal at this bearish zone. 

Will sellers acquire leverage at vary excessive?

Supply: DOT/USDT on TradingView

DOT’s drop on 8 Could left behind an FVG (truthful worth hole) zone of $5.47 – $5.61 (white). The above FVG zone strains up with 200-MA (Transferring Common) and the vary excessive of $5.5. 

The confluence with FVG may make the realm close to the vary excessive a powerful bearish zone. A destructive value response on this space may set DOT to a development reversal, particularly if BTC falters at $27.8k. 

Such a transfer may supply a shorting alternative, focusing on the fast mid-range degree ($5.3) or the vary low of $5.2. 

Conversely, a session shut above the FVG zone and $5.6 may supply bulls extra leverage. A pullback retest and confirmed uptrend may see DOT rally to $5.9. The upswing may very well be accelerated if BTC reclaims the $28k zone. 

In the meantime, the RSI was above the impartial degree, alongside a rising OBV, highlighting elevated shopping for strain and demand previously few days. 

Promoting strain abounds, however…

Supply: Coinglass

How a lot are 1,10,100 DOTs value at present? 

In accordance with Coinglass’s change lengthy/quick ratio, there have been extra quick than lengthy positions within the 4-hour timeframe. This denotes that sellers couldn’t be overruled; nonetheless, the unfold was little, giving sellers solely somewhat leverage. 

Supply: Coinglass

However over $11k lengthy positions have been wrecked previously 4 hours, with solely $251 quick positions wrecked as of press time. This denotes a short-term bullish momentum that would set DOT to retest the vary excessive earlier than a possible reversal on the bearish zone round $5.6.