Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion. The daily structure was bullish but lower timeframes asserted bearishness. This meant a deeper retracement beneath $6.5 was likely. Since early January, Polkadot has performed bullishly on the price charts. This was a trend […]
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.This meant a deeper retracement beneath $6.5 was likely.has performed bullishly on the price charts. This was a trend seen across the altcoin market, so DOT was no exception. Like the rest of the market, Polkadot has also run into strong bearish pressure over the past few days.
Since then, the prices have slumped to trade at $6.57 at press time. This amounted to losses of 16.6% within the space of a week. Analysis of lower timeframe charts such as the 4-hour showed the bears were firmly in the driving seat. The price had left an H4 imbalance in the $6.9-7.15 zone. Although there was a bounce from $6.9 on 22 February, it was not enough to break past $7.36. Now, DOT sat atop another support at $6.48, with $6.3 and $6 as further support levels to the south.The Awesome Oscillator was above the zero line but made red bars on the histogram to show the bulls were weakening in the past week. The CMF was at +0.08, which showed significant capital flow into the market.
The bias on the daily timeframe was weak bullish, and a retracement into the $6 area could offer a buying opportunity. Till then, lower timeframe traders can look to short the asset.The funding rate on Binance slipped into negative territory in recent hours to show short sellers had an upper hand. The weighted sentiment was also negative, according to Santiment data. Social dominance was 0.6% at best in February and stood at 0.32% at press time.