Connect with us
Active Currencies 13836
Market Cap $2,330,431,261,221.37
Bitcoin Share 52.70%
24h Market Cap Change $-8.70

Why Polkadot’s recovery faces headwinds

2min Read

Polkadot’s [DOT] bulls face multiple obstacles, from the mid-range to the range high. Will the recent recovery be sustainable?

Why Polkadot’s recovery faces headwinds

Share this article

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

Polkadot’s [DOT] ongoing recovery is headed into a bearish zone, which may impact traders if a price reversal occurs. A previous report entailed that DOT had a selling opportunity if bulls were discouraged in the same bearish zone. 

This time, there are more hurdles to clear before reaching the high range. Meanwhile, Bitcoin [BTC] has reclaimed $27k, but it remains to be seen if it will retest the $28k level again.

DOT edging higher to multiple roadblocks

Polkadot DOT TradingView

Source: DOT/USDT on TradingView

Above the rally lies a couple of FVG (fair value gap) zones. The first FVG zone ($5.47 – $5.61), white, was formed during the drop on 8 May. 

The second FVG (red) was formed just above the mid-range level of $5.35, while the third one (blue) aligns with the mid-range. This could make the area above the mid-range a key bearish stronghold unless BTC reclaims $28k. 

Otherwise, a price rejection could be imminent in the mid-range if BTC falters. Such a move could tip sellers to extend gains to the range low of $5.2. 

Alternatively, DOT could push through the FVGs and hit the range high of $5.51 if BTC retests $28k. But it could falter again at this level as the range high aligns with another FVG zone (white) of $5.47 – $5.61, especially if BTC cannot go beyond $28k. 

The RSI and OBV registered upticks, confirming the recent buying pressure and demand. However, RSI rested in a neutral position, and the price could take either direction.

The CVD spot is up in June

Source: Coinalyze


Is your portfolio green? Check out the DOT Profit Calculator


The CVD (Cumulative Volume Delta) spot, which tracks buying and selling volume, has steadily risen since the beginning of June. It highlights the rising buying pressure and buyers’ leverage. If Polkadot’s CVD spot rises further, it will signal a break above the mid-range of $5.35. 

Traders should track BTC price action for more optimized trade setups. 

Share

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.
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.