Polkadot [DOT]: Can bulls rally from this critical support level?
Polkadot bulls could take advantage of easing selling pressure at key support to rally. Is a bullish rebound on the cards?
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 at a critical support level.
- Spot CVD registered an uptick, as demand picked up for DOT.
Polkadot’s [DOT] price action stalled at a key support level, as bulls made a last stand against the bearish momentum at the $4.24 support level on the daily timeframe.
Read Polkadot’s [DOT] Price Prediction 2023-24
Previously, the bearish market structure on the higher timeframes saw DOT drop by a further 9% on 31 August. While bears maintained the upper hand, the $4.24 support has historically served as a rallying point for buyers. This could influence DOT’s movement over the coming days, as bulls look to mount a price reversal.
Buyers presented with an opportunity to reverse recent losses
The sharp rise of the Chaikin Money Flow (CMF) to +0.15 over the past 48 hours showed strong capital inflows, as buyers look to rally again from this support level.
A look southward revealed the buying strength present at the $4.24 support level. Earlier, DOT rallied from this support level in January and June with the rally in June providing a bullish order block (OB).
The confluence of price at the support level and bullish OB along with the on-chart indicators favor a bullish rebound. This could see buyers target the $4.5 to $5 price levels. However, a bearish break below the level could take DOT to the weekly timeframe lows of $3.6 to $4.
Market sentiment could be shifting bullish, as spot CVD slowly rose
In the past 48 hours, DOT’s Spot CVD registered a significant uptick. This was according to data from Coinalyze. It revealed that demand was beginning to rise since DOT’s price reached the critical support level.
How much are 1,10, or 100 DOT worth today?
Likewise, the Funding Rate stayed positive to signal the absence of sellers, which meant Polkadot was likely to rally from the current price level.
