DOT Rises 4% Daily as Bulls Aim for the Next Level (Polkadot Price Analysis)
polkadot‘s price action has been choppy lately as the market went through a period of consolidation last month. But things may be getting better.
Technical analysis
by TradingRage
Daily Chart
On the daily timeframe, it seems that the DOT price has been hovering around $7.5, below the 200-day moving average for a while. Still, the cryptocurrency is approaching the moving average again and aims to break above it.
Since the $6 support level has kept the price stable several times, a continuation of the uptrend above the moving average seems more likely than a continuation of the downtrend. Therefore, a rise above the 200-day moving average and towards $9 is a likely scenario in the short term.
Source: TradingView
4-Hour Chart
The 4-hour time frame clearly shows the recent price movement. The market is slowly rising in a major ascending channel. After the recovery from the lower bound, Polkadot tested the middle line of the channel.
If a break occurs, a rally towards the higher boundary and the $8 price mark can be expected. However, investors need to be careful about the Relative Strength Index reaching the overbought zone as a short-term correction could also occur.
Source: TradingView
Futures Market Analysis
by TradingRage
Polkadot Binance Liquidation Heatmap
Analyzing the futures market can provide valuable insight into key levels to watch given that the DOT price has found a bottom. This chart shows the liquidation heat map of the binance DOT/USDT perpetual pair. It shows where the most liquidity is located.
There is significant liquidity above the recent high of $7.5. Therefore, it may be a target for the market to become clear in the short term. As a result, an increase above this area could lead to a cascade of short liquidity that would likely push the price towards the $9 region.
Source: Coinglass
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive a special $600 welcome offer on Binance (full details).
LIMITED OFFER 2024 on bydfi Exchange: Welcome reward up to $2,888, use this link to register and open 100 USDT-M positions for free!
Disclaimer: The information contained on CryptoPotato belongs to the authors quoted. They do not represent CryptoPotato’s views on buying, selling or holding any investment. It is recommended that you do your own research before making any investment decisions. You use the information provided at your own risk. See Disclaimer for more information.
Cryptocurrency charts from TradingView.
#DOT #Rises #Daily #Bulls #Aim #Level #Polkadot #Price #Analysis