Polkadot [DOT] rejected at 23.6% Fib level- Here are key levels to consider
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- DOT faced rejection at 23.6% Fib level ($5.378) after BTC dropped below $27k.
- Volume dipped below late April’s level; sentiment improved slightly.
Polkadot’s [DOT] short-term downtrend persists amidst Bitcoin [BTC] price fluctuations. At press time, BTC lost hold of $27k, setting DOT for price rejection at the 23.6% Fibonacci retracement level ($5.378).
Read Polkadot [DOT] Price Prediction 2023-24
DOT has been consistently dropping after losing hold of the $7 psychological level on 18 April. Price action since late April chalked a descending parallel channel (white).
A bears’ paradise, or will bulls see reprieve?
A Fibonacci retracement tool (yellow) was placed between recent swing highs and lows on 26 April and 12 May, respectively. Based on the tool, since 8 May, the price has been oscillating between 38.2% ($5.539) and 0% ($5.117) Fib levels.
DOT’s concerted rally on 12 May faced price rejection at 23.6% Fib level ($5.378). But the drop eased near $5.233 as of press time.
If the short-term bearish pressure persists, DOT could clear the $5.233 hurdle and settle at a mid-range level near $5.172, $5.117, or the range low of $4.939. These levels could act as more short-selling targets.
Alternatively, near-term bulls could gain leverage if the price close above the 23.6% Fib level ($5.34). Such a move could tip them to clear the bearish order block at $5.433 and target the 38.2% Fib level ($5.539).
Meanwhile, the RSI was below the mid-range while CMF (Chaikin Money Flow) slid below the zero mark – a dip in buying pressure and capital inflows.
Volumes dipped slightly; sentiment improved
How much are 1,10,100 DOTs worth today?
According to Santiment, DOT’s volume at press time (98 million DOTs) was below April’s peak of 307 million. Despite the dip in volume, weighted sentiment retreated from the deep negative territory – confirming investors’ confidence improved.
However, the fluctuating trading volumes, funding rates, and BTC prices could undermine a strong recovery for DOT. Hence, worth tracking these fronts for optimized trades.