2021 was among the most popular cryptocurrencies but could not perform as expected in the last year. As BTC price bounces back from resistance, DOT Coin has started to rise. What was the reason behind the recent spike? Will the recovery continue across altcoins? We are analyzing the current market situation and predictions for DOT Coin.
Why is DOT Coin Rising?
It seems that the increase in futures positions is the reason for the current rise. In the last 24 hours, open positions have increased by nearly 6%, reaching $217 million. 34% of these positions were opened on Bybit, and 33.5% on Binance. Following today’s rise, a liquidation of $300,000 occurred, which was more than the short squeeze on November 16th.
DOT Coin investors, who have not experienced significant liquidations in futures for 8 days, are now enjoying the rise in the spot market following the liquidation of short positions. As the BTC price dipped, the popular altcoin suffered faster losses, which traders seemed to have seen as an opportunity, but it appears they were caught off guard.
Commentaries on DOT Coin
Today, Bitcoin‘s price has retreated to the $37,500 region but has not lost the critical area. DOT Coin price has been fluctuating between support and resistance for three weeks. Long tails and upper wicks indicate that short-term traders see the price confined within a narrow range as an opportunity. The influence of algorithmic trade bots, which do not require programming knowledge, has led to an increase in such structures.
The altcoin, which gained up to 5% daily, should enter the rising area between $5.83 and $7 by closing the week above $5.6. Without accomplishing this, it will not be able to escape the narrow range it has been stuck in since April.
In the first quarter of this year, its price misleadingly surged with the advertisement as the only altcoin to escape the wrath of the SEC. It then started to create new lows. And DOT Coin’s price has not yet recovered to the desired extent.
Since last September, the price, stuck between $7.25 and $4, will not be able to target the ATH region of $55 without exceeding $8.7.
- DOT Coin rises as BTC bounces back from resistance.
- Recent liquidations fuel the current surge in DOT Coin.
- DOT’s price fluctuates, challenging the $8.7 resistance.