Connect with us
Active Currencies 14427
Market Cap $2,637,843,448,471.10
Bitcoin Share 50.15%
24h Market Cap Change $-3.25

Is Polkadot [DOT] on the verge of initiating another recovery?

2min Read

Despite DOT’s market structure staying bearish, a bullish recovery looked increasing likely, due to the market showing signs of revival.

Share this article

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

  • DOT’s price remained at crossroads.
  • Promising metrics could aid bulls’ rebound attempt.

Bitcoin’s [BTC] rally to $30k on 9 August spurred bullish sentiment in the market. Despite, Polkadot’s [DOT] market structure staying bearish, a bullish recovery looked likely, due to the market showing signs of revival.

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

Consequently, DOT posted decent gains of 4.5% over the past 48 hours to raise its price to $5.05, as of press time. If DOT can remain above $5 and BTC continues its bullish rally, a significant price rebound could be in the making for the native token of the Polkadot network.

Sellers lose steam after cracking the $5.23 support level

DOT price chart on dark background

Source: DOT/USDT on Trading View

After a double price rejection on 14 July and 21 July at the bearish order block ($5.6-$5.85), bears broke the bullish defense of the $5.23 support level. However, sellers couldn’t extend the gains with buyers able to prop up the price at the $5 level.

With the general market experiencing a price uptick, DOT buyers could benefit. The Chaikin Money Flow (CMF) highlighted the growing confidence of buyers. The indicator pushed firmly from the zero mark and stood at +0.20 to show rapid capital inflows.

Similarly, the Relative Strength Index (RSI) revealed recovering buying pressure, as it edged closer to the neutral 50. This was after a spell around the oversold zone.

Bulls can expect to challenge bears for ownership of the fundamental $5.23 price level. If bulls successfully flip the level back to support, further gains could lie at $5.50 to $6. A rejection at this level could sink DOT lower toward $4.5, especially if BTC doesn’t sustain its price rally.

Buyers can be encouraged by a positive funding rate

Source: Coinglass

DOT’s funding rate flipped positive over the past 24 hours, per Coinglass. This could spur buyers in their quest for a price reversal.

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

Meanwhile, the exchange long/short ratio highlighted the shifting momentum toward buyers with longs holding a slim 50.1% advantage on the four-hour timeframe. This hinted at a near-term rally which could translate to more gains on the higher timeframes.

Source: Coinglass


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.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.