Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Polkadot [DOT] stuck near key support – When will it rebound? 

2min Read

Polkadot [DOT] reels from the aftermath of the Fed rate hike with stagnant volumes. Will bulls defend the $5.6 support?

Polkadot [DOT] stuck near key support - When will it rebound? 

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 structure was bearish on lower and higher timeframe charts, at press time. 
  • It saw trading volumes and funding rates fluctuations in the past few days. 

The crypto market saw considerable short-term downside in the first week of May as investors remained uneasy following Fed’s interest rate hike. In particular, Polkadot [DOT] suffered over 6% loss in the past seven days, per CoinMarketCap data. 


Is your portfolio green? Check out Polkadot [DOT] Profit Calculator


On the contrary, Bitcoin [BTC] only dropped by 1.1% in the same period. It indicates that some altcoins like DOT sustained more losses than the king coin. 

Will the support withstand the shelling?

Source: DOT/USDT on TradingView

DOT was bearish on lower and higher timeframe charts, at press time. Notably, after a sharp drop in the second half of April, price action has persistently stayed near the $5.60 support (cyan). The support has been shelled over four times over the past two weeks. 

Although it remains steady at press time, near-term sellers had little leverage. The RSI (relative strength index) was below 50, and CMF (Chaikin Money Flow) was -0.11 – indicating eased buying pressure and more outflows. 

The easing money inflows could favor sellers, too, especially if it persists and BTC drops below $28k. If that’s the case, DOT/USDT pair could drop to the March swing low of $5.15. 

On the other hand, a session close above the recent and immediate high of $6.2 will show a strengthening structure. Such a move could tip the pair to rally to $6.6 or April’s high and $7 psychological level. 

Trading volumes and funding rates fluctuated

Source: Santiment


Read Polkadot [DOT] Price Prediction 2023-24


DOT’s trading volumes have declined considerably since peaking on 27 April. It dropped from over $270 million on 27 April and stayed below $135 million since the beginning of May. The stagnating volumes have limited strong buying pressure and recovery. 

Similarly, trading volumes fluctuated slightly in the same period. However, the metric was positive, at the time of writing and could offer bulls slight hope. But investors should track BTC’s price action for better-optimized setups.

Share

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.