- DOT had a strongly bullish outlook after climbing past significant resistance levels.
- The 2022 downtrend’s lower highs could serve as resistance on the way up.
Polkadot [DOT] continued its bullish run after a dip to $7.57 on the 23rd of December. Earlier, AMBCrypto had reported that the $7.1-$7.9 was a strong demand zone for DOT from a higher timeframe perspective.
Polkadot also saw a surge in network activity on the 21st of December. This saw a major boost to its blockchain revenues as well, heralding good news for investors.
The breaker block served as a demand zone
Source: DOT/USDT on TradingView
AMBCrypto’s technical analysis of DOT on the one-day chart showed a firmly bullish bias. The $7.1-$7.9 region was a strong zone of resistance based on the three-day chart. It was also the previous high for 2023.
Over the past two weeks, the bulls built up enough pressure to drive prices past the $7.9 mark. They followed this up with a retest of $7.57 and another push higher. DOT was trading at $8.913 at press time and climbing fast.
The RSI was at 71.49 and signaled hefty bullish momentum. The swift move past the $8.58 mark that had acted as resistance on the 22nd of December was another sign of bullish intent. The OBV also climbed higher, denoting steady buying volume.
The Futures market reflected confidence in DOT
Source: Coinalyze
From the 16th to the 20th of December, the Open Interest chart stumbled lower alongside prices. DOT dropped from $7.26, the D3 resistance zone back then, to reach $6.5. Thereafter, the bulls fought back.
Both the price and the OI began to rise rapidly, capturing the intense bullish belief among speculators.
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The spot CVD has also been in an uptrend since the 17th of December. This meant that despite lower timeframe price dips, the spot market participants continued to buy DOT.
The CVD continued to climb higher, meaning that buying pressure was high, and DOT prices are likely to push toward the next resistance level at $9.65.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
