Polkadot’s [DOT] recovery is likely: Can bulls target pre-FTX levels?

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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 found a steady ground, and price recov­ery could be likely.
  • DOT’s Fund­ing Rate declined, but there was a slight improve­ment at press time.

Polka­dot [DOT] bulls secured a steady hold at $6.178. At press time, DOT’s val­ue was $6.277 with a flash of green, indi­cat­ing a recov­ery could be likely. 

Despite January’s ral­ly, DOT is one of the few assets that hasn’t hit its pre-FTX lev­els. How­ev­er, DOT could hit its pre-FTX val­ue in the next few days/weeks, espe­cial­ly if next week’s FOMC announce­ment is dovish. 


Read Polka­dot [DOT] Price Pre­dic­tion 2023–24


The pre-FTX level at $7.127: Is a retest likely?

Source: DOT/USDT on TradingView

On the 12-hour chart, the Rel­a­tive Strength Index (RSI) was 61, show­ing a bull­ish DOT. The On Bal­ance Vol­ume (OBV) and the Chaikin Mon­ey Flow (CMF) had upticks, indi­cat­ing that trad­ing vol­umes increased slight­ly, thus help­ing strength­en the DOT cur­rent market. 

If the trend con­tin­ues, the recovery’s momen­tum will increase, allow­ing bulls to tar­get the over­head resis­tance at $6.841 and the pre-FTX lev­el of $7.127. How­ev­er, bulls must clear the bear­ish order block at $6.566 to con­tin­ue the upward momentum. 

Alter­na­tive­ly, bears could over­whelm bulls, giv­en the low trad­ing vol­umes. Such a move could plunge DOT below the $6.178 sup­port, inval­i­dat­ing the bull­ish bias described above. But the drop could set­tle at the 100-peri­od EMA (expo­nen­tial mov­ing aver­age) or the sup­port range of $5.600 – $5.800 (green zone). 


Is your port­fo­lio green? Check out the DOT Prof­it Calculator


DOT’s sentiment and Funding Rate was negative, but …

Source: San­ti­ment

A sharp drop in Fund­ing Rate around Jan­u­ary 23 coin­cid­ed with DOT’s recent top. Fur­ther price drop on Jan­u­ary 24 saw anoth­er decline in Fund­ing Rate, indi­cat­ing falling demand in the deriv­a­tives market. 

How­ev­er, at the time of writ­ing, the Fund­ing Rate record­ed a slight improve­ment as it moved upwards. The improve­ment reflects the price recov­ery spot­ted at press time, and more demand in the deriv­a­tives mar­ket could prop up DOT’s value.

Nev­er­the­less, DOT’s sen­ti­ment remained neg­a­tive, show­ing investors were still uneasy with the asset. But the increas­ing open inter­est (OI), as evi­denced by Coin­glass, could fur­ther boost the price recovery. 

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