Идеи Анализ Polkadot at Crossroads - Down or Up?

Polkadot at Crossroads - Down or Up?

January 31, 2024 Анализ
BITmarkets | Polkadot at Crossroads - Down or Up?

Polkadot’s DOT has witnessed several price bumps in recent weeks, and the cryptocurrency is poised to grow in the long term. DOT is 90% away from its all-time high, and our technical analysis readings project’s the coin’s next move.

Weekly time frame

DT1.1

DOTUSD - 1 Week Time Frame

The weekly time frame readings suggest reveal that price has traded higher in recent weeks, successfully breaking out of the present bearish structures to close just below the $10 level.

This has created relatively equal highs, representing a Buy-side Liquidity (BSL) zone. Should this bullish trend prevail, this area can represent the playfield where large institutions will Cash out their holdings for profit.

DOT’s price dropped last week and then returned to the Buy-side Imbalance Sell-side Inefficiency (BISI) zone.

Daily time frame

DT2.1

DOTUSD - 1 Day Time Frame

On the daily timeframe, it can be observed that the price used the Sell-side Imbalance Buy-side Inefficiency (SIBI) area as a stepping stone for its rise.

Buying positions will typically situate above this area, but a possible bearish correction may take place.

4-hour time frame

DT3.1

DOTUSD - 4 Hour Time Frame

Looking into DOT’s price behavior on the 4-hour timeframe, a bullish structure consistent with the patterns of wider time frames is formed.

Recent movements reveal a price closure below the BISI and the formation of the SIBI.

It’s worthy to note that the price may fall due to liquidity withdrawal. Hence, it may be wise decision to await the price to close above the SIBI zone before market entry for purchase.

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