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DOT stuck at $5 psychological level — can the bulls rally?

2min Read

Can bulls take advantage of selling pressure slowing down to rally from the $5 psychological level?

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Selling pressure eased off at the key $5 psychological level.
  • Shorts still maintained the upper hand in the futures market.

The descent of Polkadot [DOT] beneath the $5.23 support level ended the week-long ranging formation on the 12-hour price chart. However, the selling pressure slowed down, leaving the price to stabilize at the $5 psychological level and offering bulls a good chance to rebound.


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


A successful bullish attempt would be dependent on Bitcoin [BTC] reclaiming the $29.5k price level with the king coin flashing bullish signals, as of press time.

As selling pressure eases, is DOT primed for a rebound?

DOT price chart on dark background with green and red price bars

Source: DOT/USDT on Trading View

While DOT’s price dwindled, Polkadot shone on the social front. This was highlighted by a metrics report on the network’s surging social engagements. As its social sentiment continues to rise, this could have an effect on DOT’s price.

After sellers flipped the $5.23 price level on 1 August, buyers quickly made an attempt to recover. However, the price was rejected at the new resistance level. Thus, leading to a 5% price drop over the past 48 hours.

Conversely, the stagnation of the bearish momentum at the $5 price zone offers bulls an opportunity to reverse the bearish trend.

The Relative Strength Index (RSI) pushed up slightly to 39 with the uptick a sign of reviving confidence. The Chaikin Money Flow (CMF) also moved above the zero mark with a reading of +0.06 to signal incoming capital inflows.

A bullish reversal from the current levels will need to close above the $5.23 price level for sustained gains. Another price rejection at that level may see DOT experience extended losses pushing it toward the $4.4 – $4.6 price zone.

Muted reaction in the futures market

Source: Coinglass


How much are 1,10,100 DOTs worth today?


Despite DOT presenting an opportunity for a bullish rebound, there was little to no reaction in the futures market. Shorts continued to hold sway on the exchange long/short ratio with a 52.1% share of the open contracts.

Ergo, traders should exercise caution in opening new positions to avoid being caught by a bullish rebound or an extension of the current price dip.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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