DOT Stagnates at $7.5 Key Resistance Level, Is Another Drop Coming? (Polkadot Price
polkadot‘s price is still moving intermittently after a significant decline in April. On a smaller scale, the asset is down more than 3% in the last 24 hours; This is a move perhaps fueled by developments around the SEC and the recently approved spot Ethereum ETFs.
Meanwhile, the broader market is at a critical point right now.
Technical analysis
by TradingRage
Daily Chart
DOT price has been consolidating in a flag formation and hovering around the 200-day moving average over the past month. With the holding company at $6, the price is struggling to rise above the 200-day moving average near $7.5.
The upper limit of the pattern is also being tested. If the price successfully overcomes these hurdles, a new bullish run towards the $9 level or even higher may be possible.
DOT came very close to this this week, but the bears provided strong resistance at $7.5.
4-Hour Chart
Looking at the 4-hour chart, the latest consolidation within the big flag formation becomes even clearer. The price was recently rejected from the upper limit of the formation.
With the RSI falling below the 50% level, the momentum on the 4-hour timeframe shifted to the downside. Therefore, a retest of the lower trend line seems possible in the short term.
Futures Market Analysis
by TradingRage
Polkadot Binance Liquidation Heatmap
As Polkadot price goes through a long period of consolidation, analyzing futures market metrics can provide valuable information. This chart presents the DOT/USDT binance liquidity heat map, visualizing key liquidity pools that could attract price.
The chart shows that the $6.5 and $8 levels contain the most liquidity near the current price. Therefore, a breakout from either level could trigger a liquidation phase and aggravate the move. Meanwhile, the most liquidity is currently at $10. Therefore, this is arguably the most important area where the price starts to rise.
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 #Stagnates #Key #Resistance #Level #Drop #Coming #Polkadot #Price