Polkadot can push as high as $5, but is a bearish reversal imminent?

1 year ago 220

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion

  • Polkadot has an inefficiency connected the terms charts that extended from $4.7-$5
  • Bulls are looking to propulsion the prices past the $5 region, and a retest could beryllium a buying opportunity

Polkadot has soared past the $4.35 absorption and broke the little timeframe bearish marketplace operation a fewer days ago. The plus hasn’t looked backmost since and went connected to station gains of astir 7% since then.

Read Polkadot’s Price Prediction 2023-24

Can the bulls continue to asseverate their volition connected the market, oregon were the bears biding their clip earlier striking back? At property time, the second appeared likely. In either case, the $5 people would beryllium crucial.

Polkadot breaks retired past important absorption levels

Polkadot tin  propulsion  arsenic  precocious   arsenic  $5, but is simply a bearish reversal imminent?

Source: DOT/USDT connected TradingView

Polkadot has climbed past the $4.55 resistance. On the 4-hour chart, its operation flipped bullish successful precocious December erstwhile DOT climbed supra $4.35. The beardown surge successful the past fewer hours of trading reinforced bullish momentum. Trading measurement was besides precocious successful the past fewer hours.

The Relative Strength Index (RSI) headed into overbought territory supra 70 to bespeak beardown bullish momentum. However, the RSI did not yet awesome a divergence oregon weakening bullish momentum. The DMI besides showed a beardown uptrend successful progress. The +DI (green) was supra 20, arsenic was the Average Directional Index (ADX) line, which showed a important upward inclination successful the past fewer days.

The Bollinger Bands (BB) saw a ample enlargement precocious arsenic well, indicating precocious volatility. The terms has stuck to the precocious set of the indicator. It appeared apt that the terms would retest $4.66 arsenic enactment and proceed higher.

How galore DOTs tin you get for $1?

The higher timeframe charts specified arsenic the regular illustration noted $4.7 to beryllium an important level of resistance, with $5 arsenic the adjacent northward level of interest. There was besides a just worth spread toward $5 arsenic DOT plummeted rapidly done this country during the sell-off connected December 16. Could DOT capable this inefficiency earlier a determination downward erstwhile more?

Open Interest declined portion the backing complaint remained somewhat positive

Data from Coinglass showed Bitmex and Binance person somewhat affirmative backing rates connected the DOT/USDT (or USD) pairs. This meant traders were bullishly positioned. The OI decreased successful the past fewer hours, adjacent arsenic the terms soared. This apt indicated agelong positions closed. The spot CVD has risen implicit the past 2 days arsenic well.

Risk-averse traders tin hold for a determination supra $5 and a retest earlier buying Polkadot. More assertive traders tin hold for a little timeframe bullish operation interruption to look for shorting opportunities.

Akashnath is simply a Chemical Engineering postgraduate profoundly fascinated by Technical Analysis and the crypto markets and enjoys studying terms movements and trying to find patterns.

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