Connect with us
Active Currencies 14918
Market Cap $2,509,288,061,339.80
Bitcoin Share 51.85%
24h Market Cap Change $-0.03

Polkadot’s latest move raises these shorting Qs

2min Read

Polkadot [DOT] rally has offered over 4% gains so far. However, the rally faces a key obstacle at this level…

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 was bullish on a 4-hour timeframe. 
  • A bearish zone lines up with the range high.

Polkadot [DOT] has been in price consolidation for most of May, oscillating between $5.19 – $5.49. In the past few days, price action eased at the range low of $5.2, but rallied and closed above the mid-range of $5.3. 


Read Polkadot’s [DOT] Price Prediction 2023-24


In the meantime, Bitcoin [BTC] reclaimed $27k; however, it is yet to be seen if it will maintain hold of this price zone. If BTC falters, especially at $27.8k, DOT could waver too and inflict a trend reversal at this bearish zone. 

Will sellers gain leverage at range high?

Source: DOT/USDT on TradingView

DOT’s drop on 8 May left behind an FVG (fair value gap) zone of $5.47 – $5.61 (white). The above FVG zone lines up with 200-MA (Moving Average) and the range high of $5.5. 

The confluence with FVG could make the area near the range high a strong bearish zone. A negative price reaction in this area could set DOT to a trend reversal, especially if BTC falters at $27.8k. 

Such a move could offer a shorting opportunity, targeting the immediate mid-range level ($5.3) or the range low of $5.2. 

Conversely, a session close above the FVG zone and $5.6 could offer bulls more leverage. A pullback retest and confirmed uptrend could see DOT rally to $5.9. The upswing could be accelerated if BTC reclaims the $28k zone. 

Meanwhile, the RSI was above the neutral level, alongside a rising OBV, highlighting increased buying pressure and demand in the past few days. 

Selling pressure abounds, but…

Source: Coinglass


How much are 1,10,100 DOTs worth today


According to Coinglass’s exchange long/short ratio, there were more short than long positions in the 4-hour timeframe. This denotes that sellers couldn’t be overruled; however, the spread was little, giving sellers only a little leverage. 

Source: Coinglass

But over $11k long positions have been wrecked in the past four hours, with only $251 short positions wrecked as of press time. This denotes a short-term bullish momentum that could set DOT to retest the range high before a likely reversal at the bearish zone around $5.6. 

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.