Connect with us
Active Currencies 14742
Market Cap $2,585,095,260,005.11
Bitcoin Share 51.50%
24h Market Cap Change $0.10

Polkadot price sets a new high for 2023 – Time to alter predictions?

2min Read

Given the positive Delta, bulls are more overleveraged, making hunting their levels a more likely outcome.

DOT sets a new high for 2023, can traders expect more of the same?

Share this article

  • Polkadot prices reached $8.58 on 22nd December before slipping lower.
  • This was a new high for 2023 and the market structure supported the idea of another rally.

Polkadot [DOT] gained 47% in December and has rallied 20% within just the past two days based on the prices at press time. The blockchain also saw a major increase in its revenue, which pointed toward increased usage.

The recent rally past $7.9 meant DOT has registered a new high for 2023. The technical structure showed that further price gains were likely after a minor step backward in the coming days.

The bearish order block was about to be broken

DOT sets a new high for 2023, can traders expect more of the same?

Source: DOT/USDT on TradingView

At the time of writing, DOT had closed a one-day trading session above $7.9. In the next few days, a retest of the $7.2-$7.9 region can be expected. After that, the token will likely continue its rally and push toward new highs.

The $7.2-$7.9 area represented a bearish order block on the one-day chart. The chart above was a three-day chart, which highlighted the strong bullish structure of DOT on the higher timeframe chart.

Moreover, it also underlined the next key resistance at $9.65. This level was a high from August 2022.

Whether such a rally would occur this month or in January 2024 is unclear. The OBV has risen higher without pause, and the RSI was at 75 to highlight intense bullish momentum.

What does the lower timeframe data indicate?

DOT sets a new high for 2023, can traders expect more of the same?

Source: Hyblock

Prices are inevitably attracted to liquidity. Hence, AMBCrypto analyzed the liquidation levels to understand where DOT could move next.

The Cumulative Liq Levels Delta was still deep in the positive territory even after the drop from $8.5 that commenced in the past 12 hours.


Is your portfolio green? Check the DOT Profit Calculator


There were large liquidity pockets to the north as well as the south. Given the positive Delta, bulls are more overleveraged, making hunting their levels a more likely outcome.

From the data above, AMBCrypto noted that there were significant liquidation levels till $6.93. Of note were the $7.81, $7.5, and $7.3 levels where a reversal could also occur.

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.