Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Polka dots [DOT] the ongoing recovery moves into a bearish zone, which could impact traders if a price reversal takes place. A previous report implied that DOT had a selling opportunity if bulls were discouraged in the same bearish zone.
This time there are more hurdles to overcome before reaching the high range. In the meantime, Bitcoin [BTC] has reclaimed $27,000, but it remains to be seen whether it will retest the $28,000 level.
DOT moves higher to multiple roadblocks
Source: DOT/USDT on TradingView
Above the rally are a number of fair value gap (FVG) zones. The first FVG zone ($5.47 – $5.61), white, was formed during the May 8 drop.
The second FVG (red) formed just above the $5.35 mid-range, while the third (blue) is in line with the mid-range. This could turn the above-mid-range area into a major bearish stronghold unless BTC reclaims $28,000.
Otherwise, a price rejection could be imminent in the mid-market if BTC falters. Such a move could tip sellers to extend gains into the low $5.2 range.
Alternatively, DOT could push through the FVGs and reach the high range of $5.51 if BTC retests $28,000. But it could falter at this level again as the high range corresponds to another FVG (white) zone of $5.47 – $5.61, especially if BTC cannot go beyond $28k.
The RSI and OBV recorded rebounds, confirming recent buying pressure and demand. However, RSI rested in a neutral position and the price could go either way.
The CVD spot is up in June
Source: Coinalyse
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The CVD (Cumulative Volume Delta) spot, which tracks buying and selling volume, has been steadily rising since early June. It highlights the increasing buying pressure and buyer leverage. If Polkadot’s CVD spot continues to rise, it indicates a break above the mid-range at $5.35.
Traders should follow BTC’s price action for more optimized trade setups.