Here are the Critical Clearance Points for DOT
Polkadot‘s price found support around $6.5 after breaking below the critical 200-day moving average. However, a sudden break below this key support could trigger a significant rise in the short term.
Technical analysis
By Shayan
Daily Chart
A detailed examination of the daily chart reveals a period of uncertainty and horizontal consolidation near the critical $6.5 level. The recent price action led to a break below the key 200-day moving average, currently located at $7.1, indicating dominance by sellers aiming to surpass the $6.5 support.
In case of a successful breach by the bears, a significant downtrend towards the critical $5.5 support level is highly likely.
Conversely, if a sudden uptrend occurs, buyers will target the vital 200-day ($7.1) and 100-day ($8.1) moving averages in the medium term.
Source: TradingView
4-Hour Chart
Analyzing the 4-hour time frame, polkadot‘s recent uptrend has encountered significant selling pressure around the critical resistance zone defined by the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels, resulting in a noticeable decline. appears to lead to a decline.
As a result, the price entered a downward trend, indicating the prevailing bearish trend in the market.
This indicates the potential for a sustained downtrend towards the $6 support zone, with price action in this zone serving as the primary reference point for predicting the cryptocurrency’s future direction.
Source: TradingView
Sentiment Analysis
By Shayan
Given the recent significant pullback and subsequent arrival at a key support area, traders may be keen to anticipate potential future price targets should the bullish trend reverse. In this context, constantly analyzing market liquidity levels can provide valuable information.
The chart below shows the liquidation heatmap of the Binance DOT/USDT pair. This heat map highlights price levels with significant liquidity that can potentially influence the direction of the price trend.
It is worth noting that the recent significant decline is largely due to the aggressiveness of short positions. As shown on the chart, the price zone above the $6.9 threshold is accompanied by a significant amount of liquidity in the form of buy-stop orders, making it a strong resistance area.
Therefore, the next possible target for Polkadot would be the price zone above the $6.9 level if sufficient demand returns to the market and triggers an upward recovery.
Source: Coinglass
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Cryptocurrency charts from TradingView.
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