Polkadot’s price falls past $7 – How does this affect DOT’s prediction?

Journalist

Posted: December 11, 2023

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

• Market construction remained bullish because of the overwhelming power of consumers within the final 5 days
• A retest of the $6.3-level can be probably ought to DOT shut a session under $6.8

Polkadot [DOT] has leaned strongly north in December up to now. Regardless of the pullback from $7.68 over the weekend, the altcoin retained its bullish market construction. Bitcoin’s [BTC] newest dip noticed DOT recede significantly too.

It’s doable {that a} short-term resistance stage simply above $7 might rebuff bulls ought to DOT bounce within the coming hours or days. What ought to merchants be careful for subsequent?

Quick-term transfer, subsequent retracement supplied some readability on the best way ahead

Supply: DOT/USD, TradingView

From 7 December to 9 December, DOT noticed a swift transfer north from $5.9 to $7.69. Quickly after, the bulls had been crushed again and costs momentarily dipped to $6.285 a number of hours earlier than press time.

The explosive rally previous $7 was used to plot a set of Fibonacci retracement ranges (cyan). The 78.6% retracement stage was at $6.284, the place Polkadot costs withdrew. Subsequently, two eventualities are doable. The bullish one is the place DOT surges larger with out dropping under $6.8.

The marginally bearish state of affairs, no less than within the quick time period, can be a sluggish drop in the direction of $6.285 as soon as extra. Following such a dip, the uptrend might resume. In both case, to the north, the subsequent bullish goal is at $7.9 – The next timeframe resistance stage. The $8.21 and $8.8-levels might impede the consumers as properly.

Liquidation knowledge confirmed a bounce previous $7 is probably going

Supply: Hyblock

AMBCrypto analyzed the liquidation stage knowledge from Hyblock. The final couple of days noticed the Cumulative Liq Ranges Delta drop steadily. The most recent fall to $6.3 noticed it go purple, suggesting {that a} transfer upward might contribute to ache within the Futures market.

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

Low leverage quick positions had been opened on 11 December with $7.12 because the estimated liquidation stage. Mixed with the adverse Delta, a bounce in costs to gather liquidity earlier than a reversal is feasible.