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Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- DOT’s worth motion graced a vital demand zone close to $4.5.
- Liquidation information discouraged longs, however shorts suffered, too.
Polkadot [DOT] was at a major low cost and long-term assist stage for purchasing alternatives. However a corrective rebound remained elusive, which may unnerve impatient bulls.
Is your portfolio inexperienced? Take a look at the DOT Profit Calculator
DOT traded at $4.43 on the time of writing. The extent was an extension of its vary formation ($4.0 – $4.55) since 18 August. Nonetheless, the vary formation coincided with a vital long-term assist and weekly bullish order block (OB).
What’s subsequent after the consolidation?
Supply: DOT/USDT on TradingView
The demand zone is a weekly bullish OB of $4.22 – $4.59 (cyan) and doubled up as January and December lows. The Q1 rally bounced from the above stage, and an analogous pattern was noticed throughout the June restoration.
However one other August retest was but to report a stable corrective rebound from the demand zone. A worth consolidation has prolonged for over per week with out indicators of a worth reversal.
Nonetheless, the CMF fluctuated above zero, underscoring weak however optimistic capital inflows. The RSI additionally tried to retreat from the oversold zone, demonstrating delicate shopping for stress, but sellers had total management.
So, DOT may shoot to $5 or $5.2 within the subsequent few days/weeks, particularly if Bitcoin [BTC] surges above $26.8k and $27k. However the bulls should clear the $4.8 to achieve an additional edge.
Conversely, a breach beneath the demand zone will expose DOT to potential depreciation to the $4.0 stage.
Longs discouraged
Supply: Coinglass
How a lot are 1,10,100 DOTs worth today?
On the time of writing, lengthy positions have been discouraged. In response to Coinglass’s liquidation information, over $55k longs have been wrecked in comparison with >$20k shorts inside 12 hours earlier than publication time.
The distinction between brief and lengthy liquidations wasn’t too massive, suggesting doubtless prolonged vary formation. However BTC’s muted motion may delay a stable corrective rebound, so it’s value monitoring its worth motion.
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