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How Polkadot managed to remain bullish while broader markets saw fear

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Polkadot remains bullish on the longer timeframes as the rest of the market saw fear
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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

A recent report explored whether Polkadot formed a cup-and-handle pattern and was preparing for a sharp move upward. The selling pressure across the market in the past few days ensured that such a move did not materialize. However, the bulls still had some sway in the market. Yet, it must be remembered that Bitcoin could have a strong influence on the direction of DOT in the weeks to come.

DOT- 1 Day Chart

Polkadot remains bullish on the longer timeframes as the rest of the market saw fear

Source: DOT/USDT on TradingView

In late December, DOT fell out of a descending triangle pattern (white) and plunged to $16. The past few months have seen the price oscillate between the $16 lows and the $23.18 resistance level.

In late March, the price was able to poke above the $23.18 level, which is a higher high and the start of a potential uptrend.

A set of Fibonacci retracement levels (yellow) were plotted from the swing low at $14.05 to the $23.85 swing high. The 61.8% and 70.2% retracement levels have been tested as support.

A buying opportunity can be found in the $16.15-$17.79 area, with the $23.85 and the $26.52 as potential price targets.

Rationale

Polkadot remains bullish on the longer timeframes as the rest of the market saw fear

Source: DOT/USDT on TradingView

The RSI dropped below 50 in response to the strong drop from $23 in the past two weeks. With a reading of 42, the momentum was not quite strongly bearish, nor was the trend on the daily bearish according to the RSI.

The CMF also slipped beneath the -0.05 level in response to the recent wave of intense selling. However, the OBV offered some solace to the bulls. It has not dropped beneath a level that had been resistance in February, which meant that buyers still had some control over the direction of DOT.

Conclusion

Polkadot has a bullish outlook for the next few weeks, provided Bitcoin does not see a strong drop beneath the $39k level. This could spark further fear in the market. From a technical perspective, the market structure leaned toward the bullish side. However, a drop beneath $16.15 could shift this bias.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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