As a seasoned crypto investor with a keen interest in Polkadot, I’ve been closely monitoring its price action over the past month. The market has been in a consolidation period, with DOT‘s price hovering below the 200-day moving average for some time now. However, recent technical analysis suggests that things might be turning for the better.
Lately, Polkadot‘s price movement has shown some volatility, reflecting a phase of market consolidation during the past month. Yet, there are signs of potential improvement on the horizon.
Technical Analysis
By TradingRage
The Daily Chart
For several days in the daily chart, DOT‘s price has remained beneath its 200-day moving average, which hovers around the $7.5 level. However, DOT is currently attempting to surpass this average and potentially break above it.
As an analyst, I’ve observed that the price has bounced back from the $6 support level on multiple occasions. Consequently, a bullish breakout above the moving average appears to be a more plausible outcome than a bearish trend continuation. In the near future, I anticipate the price to surge past the 200-day moving average and head toward the $9 mark.
The 4-Hour Chart
Over the past 4 hours, the market trend is evidently displayed through the price movements. The chart reveals an upward trajectory, with the market forming a sizeable uptrend line. After bouncing off the support level, Polkadot attempted to breach the channel’s middle line.
If a breakout happens, the price may surge towards the $8 mark and beyond. However, it’s essential for investors to keep an eye on the Relative Strength Index (RSI). Once it enters the overbought zone, there is a possibility of a short-term correction.
Futures Market Analysis
By TradingRage
Polkadot Binance Liquidation Heatmap
Examining the futures market can provide essential information regarding crucial price points to monitor, as the DOT token’s value appears to have reached a bottom based on current trends. The following chart illustrates the Binance DOT/USDT perpetual pair’s liquidation heatmap, highlighting areas where significant liquidity is available.
There is a significant amount of available liquidity sitting above the current price peak of $7.5. As a result, this level might serve as a potential target for market activity in the near future. Subsequently, if the price rises above this point, it could trigger a wave of short sellers looking to cover their positions, potentially driving the price up towards the $9 area.
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2024-05-17 17:49