Polkadot Price Analysis : DOT preparing for relief rally in January 2023 ?

• DOT price formed bullish hammer candle near the support level of $4.370
• The MACD reversed upside and may generate positive crossover, meanwhile the RSI tested below 30 levels which may trigger a relief rally soon.

DOT prices are trading with mild bearish cues in the expectation of a relief rally soon. As per coinglass, In the last 12 hours the long and short ratio stood at $0.92 which indicates bearishness may continue for some more time. As of now, DOT/USDT is trading at $4.491 with the intraday loss of 0.02% and 24 hour volume to market ratio stood at 0.0202

Will the bears step back ?

On a daily time frame, DOT Prices are in downtrend trend and continuously slipping down while forming lower low swings, shows the bear dominance on higher levels. In the end of August bulls formed a strong bullish candle after hitting the low at $6.520 gained some positive momentum and tested a high at $9.598 but unfortunately, it resulted in a bull trap and sellers succeeded in dragging the prices down. 

DOT prices had also shown minor pullback rallies which are used by short sellers to build short positions and bears kept on dominating in the higher levels. The 200 day ema (green) sloping down indicates trend to remain weak on a positional basis and the 50 day ema (yellow) at $5.261 will act an immediate hurdle in coming days followed by next will be $6.00 The MACD reversing upside and may generate positive crossover in coming days and the RSI tested below 30 levels which may trigger a relief rally soon.

What levels may trigger a relief rally ?

On a lower time frame, DOT price chart is similar to higher time but a recent breakdown at $5 looks little scary and will act as a strong resistance in the coming days. In the past few weeks DOT is trading in the tight range between $5.00 to $5.772 with a hope of a short term trend reversal but aggressive sellers kept on selling from higher levels and succeeded to drag the price below the important support level of $5.00. The supertrend indicator had generated a sell signal indicating the short term trend is still in bear grip, whereas if bulls succeed to trade above $5.00 we may see a short term bullish trend reversal and a relief rally soon.

Summary

DOT prices are in a downtrend and bears are continuously dominating on higher levels but after a consistent fall from the past few weeks, it’s obvious that the minor pullback rally may arrive soon. As per technical analysis, prices are indicating initial signs of a relief rally in coming weeks. So, aggressive traders might look for buying opportunities for the target of $5.000 and above by keeping $4.000 as SL and if prices slips below $4.00 bears may drag the prices further down towards $3.500 levels.

Technical levels

Resistance levels : $5.000 and $5.772

Support levels : $4.039 and $3.800

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Latest posts by Ritika Sharma (see all)