The previous trading week on the DOT market showed that volumes resources of sellers are depleted. The weekly candle closed at low volumes and formed a long pin down. The third week of local domination of sellers is over and a new growth wave is beginning to form.
Sellers managed to reach the target of $4.75, which we wrote about in the previous article. The DOT price exceeded our expectations and tested $4.54 on 11 December. It was almost at the lowest daily volumes in recent months, which showed the complete helplessness of sellers in this price range:
DOT buyers are gathering forces for a new wave of growth
Buyers skillfully exploited this weakness and in 4 days they completely covered the DOT fall wave from 4 December. At the moment, the price is near the middle line of the black growth channel, which ably withstands all sellers’ attacks from 8 October.
The ease of the price growth without much resistance from sellers indicates the formation of a consolidation triangle. In addition, looking at Bitcoin plans to update the historical high, there is a high probability of switching all the attention and capital to it. This probability is confirmed by the positive dynamics on the BTC dominance chart:
This fact can slow down the DOT market development and check buyers for strength.
Locally important DOT price marks
If we analyze at what prices DOT market participants bought and sold the most during December – the mark of $4.9 is clearly highlighted:
As we can see, during the fall from 3 to 11 December and during the current growth wave, the volumes have been accumulating in this range. Therefore, while the DOT price is above this mark – a local initiative in the hands of buyers.
The situation on the DOTBTC pair chart significantly hinders the total positive in the DOT market:
Buyers have miraculously managed to keep the price from updating the low. And now the price is below the critical green range. Fixing the price above this range will break the depressing downward trend of September 2020. This event will indicate a new DOT bullrun and increase its impact in the crypto and DeFi markets.
The first DOT medium-term target is $6.9
In general, the market situation is favourable for the continued DOT growth and the first serious target is at $ 6.9. This mark is the historical token high that buyers were able to set in August during the Defi boom.
If the local critical point for buyers is the mark of $4.9, then the global growth trend will fail, if sellers break $4.35-4.45. Nevertheless, so far there are no preconditions and signals for such an alternative scenario in the DOT market.