Polkadot (DOT) price movement is currently taking place between the $3.95 support and the $4.3 resistance. This price range was formed approximately 48 hours ago when the DOT price experienced a 6% drop. The price initially dropped to $3.95 and then rose to $4.3. At the time of writing, the price is trading at $4.087. Meanwhile, Bitcoin has once again risen above the $27,500 level and reached $28,000. This price movement could provide support to DOT investors in breaking the $4.3 resistance level.
Polkadot Analysis
At the beginning of October, the Chaikin Money Flow (CMF) was giving signals indicating strong capital inflows. The fact that the bulls were able to carry the price up to the $4.3 resistance level is also an indication of this. Despite the price dropping to $4 after that, the CMF value is still above zero, indicating that capital inflows are still ongoing.
When analyzing the 12-hour price chart, it can be observed that a downward movement occurred below the 50 level on the Relative Strength Index (RSI). This movement can generally be interpreted as a bearish movement. In such cases, bulls need to take action to revive the upward movement. If they fail to do so, the support level can be broken, and the price can move towards undesirable levels.
If the bulls can break the resistance at $4.3, they can move the price between $4.4 and $4.6, thus increasing the gains. On the other hand, if the support level is broken by the bears, it can pull the DOT price down to the range of $3.6 to $3.8, potentially causing the lowest prices of 2023.
Polkadot Coin Future
Data from Coinalyze shows that despite price movements, Open Interest (OI) has been increasing since September. This usually indicates the possibility of a consistent price increase in cryptocurrencies. DOT may also experience this and witness a price surge.
Additionally, the Cumulative Volume Delta (CVD) is also experiencing a stable movement. This upward movement suggests the presence of strong demand. In the short term, belief in a price recovery in DOT may increase among investors.
