Bitcoin (BTC) lost approximately 7% within the past hours, exhibiting a bearish stance in the near term. Most alternative tokens followed, posting double-digit losses within the last 24 hours. The overall market endured a bloodbath during this publication.
Polkadot was among the altcoin. DOT climbed to $7.7 amidst stable demand. Nevertheless, sellers emerged within no time as fear dominated the marketplace again.
Polkadot 1Hr Timeframe
The last two weeks had Polkadot trading within the $7.7 and $6.9 range. The VPVR (Volume Profile Visible Range) tool placed the POC (Point of Control) at $7.25. That’s where massive trading volume emerged within the visible range.
It presented a significant support level, which Polkadot broke over the past day. The Value Area High and Low stood at $7.64 and $7.03. The price hovered below the VAL during this publication. Meanwhile, the VAL showed a lucrative ‘buy’ opportunity, though the drop below $7 indicated that long positions could be unsafe.
Polkadot might revisit $7 and $7.3 as prices search for liquidity. Nevertheless, the belt at $7.25 – $7.3 might ensure a massive resistance for the token to overcome with the first few trials.
Reasoning
The RSI (Relative Strength Index) declined to 22 from 60 within 24 hours. Also, the MACD (Moving Average Convergence Divergence) noted a sharp dip under the zero line. Indeed, bearish momentum dominated the latest trading hours.
Nevertheless, can we expect a relief rally for DOT? The A/D (Accumulation/Distribution) indicator recorded a dip, staying beneath a resistance mark from the previous week. Rejections near this mark might welcome further declines.
Also, the CMF (Chaikin Money Flow) highlighted a bearish stance. It remained massive beneath -0.05, indicating a substantial selling strength.
Final Thought
DOT price should overturn the $7.3 mark to justify a near-term bullish bias. Also, the volume indicators should surge beyond their resistance zones. It’s more probable that action to $7.25 – $7.2 would present a ‘sell’ opportunity than the buying one.
The past few hours have seen intensified bearish actions in the crypto industry. Bitcoin lost the $19K vicinity following a sharp dip. The bellwether crypto battled bearishness at $18,913 during this publication, exhibiting a 4.71% 24hr drop.
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