- Polkadot can have potential for a bullish trend, but the purchasing pressure has been weak
- Liquidation Heatmap and Fibonacci Eivers seemed to agree
Polkadot [DOT]At the time of the press, Bullish showed drawing at the lower time scas graphs and seemed to be preparing to break beyond the $ 4.2-local resistance level. Bitcoin [BTC] Was also traded above the $ 92k level, so that bullish faith under altcoins was detected.
An analysis last week showed that the level of $ 3.8 was an important level to support. Dot’s Bulls have achieved this since then. But now they can have more ambitious plans.
Polkadot retains a bearish swing structure, but traders can be hopeful
Source: Dot/USDT on TradingView
The swing structure in question on the 1-day graph was recorded by the Retracement levels of Fibonacci. The high at $ 4.76 must be defeated to shift the bullishs structure. In the meantime, the levels of $ 4.18 and $ 4.44 were the key resistors nearby.
The A/D indicator has been flat in the past month. The lack of uptrend meant that buying pressure was weak and was a hint that bulls might not be ready to control an upward trend. At the time of writing, the great oscillator was still under the zero line – a sign that momentum was not yet bullish on this time frame.
The DMI also reflected a lack of a clear trend, in which both the Di and +DI are lower than 20. The price action and the technical indicators noted of market participants in the past week.
Source: Dot/USDT on TradingView
Zooming the bullish momentum seemed to be clearer.
The prize has set a series of higher highlights and higher lows in the past two weeks, which forms a bullish structure. The DMI also reflected a strong walk -in trend, where the A/D’s Uptick hints on a greater demand for Polkadot.
The HeatMap liquidation also emphasized the risks to introduce long positions now. The $ 4- $ 4.18 and the $ 4.3- $ 4.4 regions are both magnetic zones for the price. They can pull DOT higher, but they are also the risk of a bearish reversal afterwards.
With the 1-day structure not yet bullish, traders can look in a long position at profit at the resistance levels of $ 4.18 and $ 4.44. An increase in these two levels, and a retest of $ 4.44 or $ 4.76 as support, can be used to discuss long positions on the next upward movement.
Disclaimer: The presented information does not form financial, investments, trade or other types of advice and is only the opinion of the writer