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Looking to long Polkadot? What you should consider

2min Read

What’s ahead for Polkadot as it remains below $5 while Bitcoin struggles to stay steady in the $26k price zone?

Looking to long Polkadot? What you should consider

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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.

  • DOT previously faced a price rejection at $4.800.
  • Open interest rates wavered amidst mild buying pressure.  

On 14 June, we explored the short-term likelihood of Polkadot [DOT] derailing at the critical bearish zone around $4.8. The prediction was confirmed after Bitcoin [BTC] faltered at $26.6k, prompting most altcoins, including DOT, to surrender recent gains. 


Is your portfolio green? Check out the DOT Profit Calculator


What’s in store as DOT retests the same bearish level?

Recently, Polkadot re-invented its Web 3 governance through OpenGov, giving extra control to DOT holders. But the development didn’t inflict an upside for DOT on the price charts, given the prevailing regulatory and macro headwinds. 

Polkadot: Is another price rejection at $4.8 likely?

Source: DOT/USDT on TradingView

At press time, DOT’s RSI (Relative Strength Index) faced rejection at 60-mark and eased to the neutral level. It highlights a drop in buying pressure. Similarly, the rising OBV (On Balance Volume) registered a downtick, indicating a slight decline in demand. 

The $4.53 – $4.80 zone (white) is an FVG (fair value gap) formed during the 10 June plunge. So, if BTC falters at $26.6k again, buyers’ exhaustion could set in, driving DOT to retest the immediate support level of $4.328. 

A rebound from this immediate support level could tip DOT to rally toward the bearish zone again. So, bulls could watch out for the $4.2 – $4.328 retest and target $4.8. 

A drop below $4.2 will invalidate the bullish thesis and could make a crash toward $4.0 a reality. 

Mild buying pressure amidst wavering OI

Source: Coinalyze

After a sharp drop on 15 June, the CVD (Cumulative Volume Delta) rose in a sluggish manner, denoting mild buying pressure. The weak buying volumes could be attributed to open interest (OI) rate fluctuations. 


How much are 1,10,100 DOTs worth today


OI accounts for the number of open contracts in the futures market. An uptick will denote a bullish bias, while a decline a bearish bias. A wavering OI shows a lack of a trend, which could point to an imminent range extension of $4.2 – $4.8.

However, wild BTC price swings could break the range, hence it is worth tracking. 

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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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