Polkadot (DOT) accompanied the bullish market on Saturday, August 24, but the move later resulted in a pullback. Now it continues to find buyers at the $4.22 support level, which it retested two weeks ago. In the important information that emerged recently about DOT, it was said that the $4 price level was a psychological support zone for the altcoin. Whether the price of Polkadot will fall to $4 before a recovery occurs or whether a bounce will occur from $4.22 continues to be a matter of curiosity among traders and investors.
DOT Expectation in the Market
The market structure on the daily chart appeared to reflect complete uncertainty. The $4.22 price level was seen as support over the last two weeks and this area was visited once again. A bounce from this level could open the door for DOT to reach local highs of $5. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
However, technical indicators suggested that some price declines could be expected on the 12-hour timeframe. The MACD has exhibited a bearish crossover to signal a shift in momentum, and the OBV has been rejected near highs from earlier this month.
On the other hand, while it seems that OBV has not experienced a major decline, it seems that the $ 3.6 level is still far away for now, but it may also be seen that the price declines to this level with a rapid decline in the market.
The Future of DOT
DOT’s Looking at the price analysis, there were comments that the altcoin could form a short-term bottom. However, according to the analysis carried out based on the liquidation heat map, which is one of the important indicators of the market, the $ 4.22 level could be broken, at least for a short time, and a periodic upward movement could occur.
Despite this, there seems to be a heavy liquidation cluster at $4.11, which could open the door for a downward movement in prices before a trend reversal.
For this reason, it can be seen that investors who have targeted a return to $5.17, which has been an important level in the past, are also chasing a buying opportunity in these areas depending on the liquidity level at $4.05-4.11.
In the past period, it has been seen that the Polkadot team has attracted backlash with the decisions they have made and the expenses they have made. It seems that what will happen in the future will continue to be a matter of curiosity.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
