Polkadot (DOT) experienced a bullish market on Saturday, August 24, but later retracted. Now, it continues to find buyers at the $4.22 support level tested two weeks ago. Recent information indicated that the $4 level is a psychological support zone for DOT. Traders and investors remain curious whether the price will drop to $4 or bounce from $4.22 before a recovery.
Market Expectations for DOT
The daily market structure showed complete uncertainty. Over the past two weeks, the $4.22 price level served as support and was revisited. A bounce from this level could open the door for DOT to reach local highs of $5.
However, technical indicators suggested a slight price drop in the 12-hour timeframe. The MACD showed a downward crossover, indicating a momentum shift, and the OBV was rejected near the month’s highs.
On the other hand, the OBV did not experience a significant drop, and the $3.6 level still seems distant. However, a rapid market decline could see the price fall to this level.
Future of DOT
DOT’s price analysis suggested that the altcoin might form a short-term bottom. However, according to the analysis based on the liquidation heatmap, the $4.22 level could break briefly, leading to a temporary upward movement.
Nevertheless, a significant liquidity cluster at the $4.11 level could pave the way for downward movement before a trend reversal.
Therefore, investors aiming for a return to the crucial $5.17 level might seek buying opportunities around the $4.05-$4.11 liquidity levels.
In the past, the decisions and expenditures of the Polkadot team drew reactions. It remains to be seen what will happen in the future.
