- DOT is expected to see a decline from its press time level, according to market indicators and sentiment analysis
- If sufficient buying pressure emerges at the support level, a strong rebound can be anticipated
As an experienced crypto investor with a few battle scars to show for it, I can’t help but feel a mix of anticipation and apprehension when looking at Polkadot [DOT]. The 21.81% weekly gains are certainly tempting, but the recent downtrend and bearish pressure building in the market suggest that we might see a decline from current levels.
It’s possible that Polkadot‘s [DOT] impressive 21.81% weekly growth could slow down imminently. This prediction is based on the fact that the asset has already begun to drop, as at this moment, DOT is experiencing a decrease of 1.81%. It seems likely that this downtrend may continue for DOT in the near future.
According to AMBCrypto’s recent examination, the predicted next level for DOT has been highlighted, suggesting a possible point where a recovery might take place.
Bearish pressure builds as traders bet on DOT’s decline
Based on the current market opinion, it seems that DOT could continue falling from its current prices.
It appears that spot traders may have started a downward trend by transferring their DOT tokens from personal wallets to exchanges for selling purposes. This is supported by recent data showing a net flow of approximately $125.72 million in DOT moving into exchanges, suggesting significant selling pressure.
Over the past day, there’s been a surge in selling activity, as evidenced by the fact that over $1.21 million worth of long positions have been closed out. This suggests that many traders who predicted a rise in the market are now facing substantial losses.
Currently, just about $151,000 worth of short positions have been closed, leading to a significant discrepancy that heavily tilts the market towards the bearish side.
Anticipated DOT drop – Where will it find support?
Based on technical analysis from AMBCrypto, the next possible support level for DOT might be around $4.484 on the chart. The current price movements seem to indicate a potential drop towards this point. If there’s enough demand at this level, DOT could experience a surge of up to 73.39%, reaching a target of approximately $7.75.
If the current support at this level doesn’t hold, DOT might drop to another potential support at $3.940. This lower support could potentially trigger increased buying activity, pushing prices upward. Yet, it’s possible that the price action may pause or stabilize around this level, given its historical significance.
Liquidity outflows signal potential DOT retracement
The Money Flow Index (MFI) and Chaikin Money Flow (CMF) indicators for DOT highlighted a downtrend.
Despite a decrease, these technical indicators, which analyze market feelings based on volume and price, maintained a favorable outlook. Currently, the MFI stands at 56.99, and the CMF shows a value of 0.20 – both figures indicating they are in a positive state.
Despite the fact that both MFI and CMF showed gains, their decrease suggested a momentary pause, not a full change in direction. So, even though DOT’s current price movement seems bullish, this downturn might just be temporary, followed by another rise.
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2024-11-15 10:48