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Polkadot sellers to target $4.8 next?

2min Read

Polkadot’s pullback breached the May support and is headed to next support level. Will sellers double-down?

Polkadot sellers to target $4.8 next?

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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

  • DOT bulls lost control after retesting the June high of $5.5.
  • Spot CVD declined, but Open Interest rates steadied.

Polkadot [DOT] sellers have consolidated their control since price rejection at the June high near $5.5. A short foray above the June high was a liquidity hunt as DOT hit $5.64 on 3 July before entering a pullback. 

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

At the time of writing, DOT’s price was $5.022, below the March low and former support of $5.2. Another price rejection at the March low further reinforced sellers’ leverage, setting them to focus on the $4.8 support for extra gains. 

On the development front, a new version – Polkadot 2.0 featured in recent talks, but the narrative hasn’t changed DOT’s price trend by the time of writing. 

Will the immediate support hold?

Source: DOT/USDT on TradingView

The impressive recovery from June hit a snag at retesting the June high. The price rejection saw DOT reverse part of the recent gains, shedding over 10% after dropping from $5.64 on 3 July to $5.02 at the time of writing. 

The drop flipped the March low and May support of $5.2 into a resistance. So far, bulls failed to reclaim, giving sellers more edge to seek gains at the next support level – $4.87. Although a liquidity hunt beyond $4.8 can’t be overruled, bulls could attempt to secure the support. 

So, a rebound at $4.87 and a confirmed uptrend could be a buy signal, especially if BTC doesn’t drop below $30k. In such a case, the immediate target will be $5.2, while the June high will be a secondary target. 

Conversely, BTC faltering below $30k could set DOT to further aggressive sell-off. A retest of $4.3 could be feasible if bulls fail to hold the $4.87 support. 

The RSI failed to climb above the neutral position while OBV wavered above -80 million, denoting demand waned in the past few days. 

Open Interest rates steadied

Source: Coinalyze

On the 1-hour chart on Coinalyze, a crypto derivative data tracking platform, the Open Interest (OI) dropped but steadied afterward. At the time of writing, the OI rose to $131 million, down from $127 million. 

Is your portfolio green? Check out the DOT Profit Calculator

However, the declining Cumulative Volume Delta steadied in the past few days, meaning selling pressure eased. Taken together, the metrics could point to a possible price pivot and likely rebound at $4.87 support. 

But BTC’s foray into $29k could see the support cracked too. So, bulls should wait for a confirmed uptrend and a BTC price above $30k before seeking re-entry.  


Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
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