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Polkadot: Sellers crack $5.23 support — can bears sustain momentum

2min Read

Bears crack bullish staunch defense of $5.23 support level amidst Bitcoin dip under $29k.

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

  • Sellers take advantage of bearish market conditions to crack this key support level.
  • Bearish momentum was evident in DOT’s open contracts.

Polkadot [DOT] sellers rode on the predominant bearish sentiment in the market to break below the key $5.23 support level. Buyers and sellers had been caught in a range formation between the bearish order block and the key support level.


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


Bitcoin’s [BTC] dip under the $29k price level gave bears the opportunity to flip the $5.23 level to resistance. Will this prompt a reaction from the bulls?

Bulls defeated by the inability to push past bearish order block

DOT price chart on dark background with green and red price bars

Source: DOT/USDT on Trading View

The stiff resistance put up by bears at the bearish order block (OB) between $5.6 to $5.9 severely hampered the bullish rebound from the June low of $4.24. The most recent price rejection at the bearish OB saw DOT dip to the key support level.

With the price action at the support level hinting at discouraged buyers, bears seized the opportunity to break below the key support over the past 48 hours.

The sharp dip of the Relative Strength Index (RSI) over the past three days highlighted the waning buying pressure. Similarly, the Moving Average Convergence Divergence (MACD) remained under the zero mark after posting a bearish crossover.

A little glimmer of hope lies for bulls at the $4.8 to $5 price zone. However, if bears push past this hurdle, they can extend their gains to the lows of $4.2 to $4.5.

Futures market highlighted growing sellers’ advantage

Source: Coinglass


How much are 1,10,100 DOTs worth today?


The bearish momentum was highlighted by shorts holding onto a greater share of the open contracts for DOT. A look at the exchange long/short data from Coinglass on the four-hour timeframe revealed a 52.5% swing in favor of sellers.

This suggested a likelihood of bears clearing the $5 hurdle with the price action titled in favor of sellers.

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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.
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