Polkadot (DOT) experienced a bullish market on Saturday, August 24, but later retracted. Now, it continues to find buyers at the $4.22 support level tested two weeks ago.
Market and Expectations for DOT
The daily market structure showed complete uncertainty. Over the past two weeks, the $4.22 price level served as support and was revisited. A bounce from this level could open the door for DOT to reach local highs of $5. However, technical indicators suggested a slight price drop in the 12-hour timeframe. The MACD showed a downward crossover, indicating a momentum shift, and the OBV was rejected near the month’s highs. On the other hand, the OBV did not experience a significant drop, and the $3.6 level still seems distant. However, a rapid market decline could see the price fall to this level.
Future of DOT
DOT’s price analysis suggested that the altcoin might form a short-term bottom. However, according to the analysis based on the liquidation heatmap, the $4.22 level could break briefly, leading to a temporary upward movement. Nevertheless, a significant liquidity cluster at the $4.11 level could pave the way for downward movement before a trend reversal. Therefore, investors aiming for a return to the crucial $5.17 level might seek buying opportunities around the $4.05-$4.11 liquidity levels.
Conclusion
In the past, the decisions and expenditures of the Polkadot team drew reactions. It remains to be seen what will happen in the future.
Polkadot investors continue to closely monitor key support levels to predict future price movements.
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