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Polkadot [DOT] slides back to key support – Will bulls prevail?

2min Read

Polkadot [DOT] seems ready for price reversal. However, its short-term prospects depend on how the market will price in the FOMC announcement.

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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

  • The structure was bearish on the 4-hour chart.
  • Longs dominated, but demand fluctuations could delay bulls’ efforts

Polkadot [DOT] saw elevated selling pressure as the FOMC meeting began on 2 May. It dropped to $5.596 before attempting recovery on the same day. At press time, DOT traded at $5.664 and was still within a key support zone and bullish order block. 

Is your portfolio green? Check DOT Profit Calculator

Similarly, Bitcoin [BTC] struggled to close above $28.8k – a key price ceiling in March and early April at press time. This could delay a strong recovery for DOT unless BTC reclaims $29k. 

Moreover, a recent report revealed that Polkadot saw an impressive performance on socials. But development activity remained low and could undermine a strong recovery too. 

More downward pressure – Will bulls withstand it?

DOT price action on 4-hour timeframe

Source: DOT/USDT on TradingView

DOT’s price action was below short and long-term trends (50-EMA and 100-EMA). In addition, both the EMAs were down sloping, reiterating elevated sellers’ action since mid-April. 

However, low wicks within the bullish order block and support zone of $5.61 – $5.86 (cyan) show bulls could fight for control for a while. The RSI recovered slightly from the oversold zone, and the support has been steady since mid-March. 

Near-term bulls could attempt a recovery, especially if BTC reclaims $29k and surges. In that case, DOT/USDT pair could rally to the bearish order block and supply zone of $6.60 – $6.92. 

A close below $5.600 (current support zone) could expose DOT to more short-term selling pressure. It could push DOT to retest the March swing low of $5.15. 

Longs dominated; demand fluctuations persist

Source: Coinglass

Coinglass data revealed that buy positions dominated at 52.96% against sell positions at 47.04% in the past 4-hour period. It showed bulls could have a recovery chance. 

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

However, fluctuations in open interest (OI) rates in the past two days could undermine bulls’ efforts. Notably, the OI hit $171.89 million on 1 May before surging to $176.58 million on 2 May. 

On 3 May (press time), the OI peaked at $177.31 million before dipping slightly to $171.52 million. The demand fluctuations in the futures market could delay a strong recovery. 

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.
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