Connect with us
Active Currencies 14836
Market Cap $2,293,629,805,037.10
Bitcoin Share 54.14%
24h Market Cap Change $-1.70

Polkadot price prediction shows 5% dip, but it’s not all bad news!

2min Read

Price analysis showed that DOT could be forming a short-term bottom. Yet, the $4.22 level might be broken, at least briefly.

Polkadot is likely to see a 5% price drop but a bullish reversal is anticipated afterward

Share this article

  • Polkadot could see a slightly deeper price drop before recovery.
  • The higher timeframe momentum was shifting bearishly as prices retested a support level.

Polkadot [DOT] achieved a bullish market structure break on Saturday, the 24th of August, but has retraced the move entirely. It was trading just above the $4.22 support level that it had retested two weeks ago.

A recent report noted that the $4 region was a psychological support zone. Will Polkadot prices fall to $4 before a recovery, or should traders expect a bounce from $4.22?

Should traders be bearish or bullish?

DOT 12-hour TradingView

Source: DOT/USDT on TradingView

The market structure on the daily chart was bullish. The $4.22 level has served as support in the past two weeks and is likely to do so again, which could see DOT boosted to the local highs at $5. This could lead to a range formation.

Yet, the technical indicators showed some bearishness on the 12-hour timeframe. The MACD formed a bearish crossover to signal momentum was shifting, and the OBV saw a rejection near the highs from earlier this month.

However, the OBV did not sink too deep, meaning that traders need not expect a move toward $3.6 next.

A revisit to this level might be required before recovery

Polkadot Liquidation Heatmap

Source: Hyblock

The price analysis showed that DOT could be forming a short-term bottom. Yet, the $4.22 level might be broken, at least briefly, according to AMBCrypto’s analysis of the liquidation heatmap.


Read Polkadot’s [DOT] Price Prediction 2024-25


There was a dense cluster of liquidation levels at $4.11 that could attract prices to it before a reversal.

Therefore, swing traders can look for buying opportunities at $4.05-$4.11 targeting a reversal to $5.17, the next liquidity pool to the north.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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.