Polkadot (DOT) Buyers Withstood a Blow in the Range of $7-7.5

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Polkadot (DOT) Buyers Withstood a Blow in the Range of $7-7.5

Sellers arranged a rather dangerous inspection in the Polkadot (DOT) market. The triumphant price growth, which began in late December significantly slowed in the range of $9.6-10.

Despite the frantic trading volumes, buyers could not continue the Polkadot (DOT) price growth without rest. The struggle for this range lasted 9 days. The signal for the surrender of buyers was the daily candle on 9 January:

Polkadot (DOT)
Source: Trading view

Polkadot (DOT) price exhausts buyers

As you can see in the chart, after the unsuccessful DOT price-fixing in the range of $9.6-10, the next attempt of buyers from 9 January was at very low volumes.

This fact showed a low interest of investors to actively buy at such prices. As a result, we saw a sharp correction in the Polkadot (DOT) market, in which the price fell by 26%.

In the previous article we wrote about an important range of $7-7.5. Buyers confirmed their strength and interest in this range, not letting the price fall below.

If you pay attention to the volume at which the price sharply fell on Monday (11 January), the strength of buyers becomes obvious. Closing a daily candle with a large pin hint at great interest from investors in this range.

Local range of $8.7-8.8 to lit a growth wave

If we look at the situation locally, the main price fall lasted only an hour and began after breaking the mark of $8.7-8.8:

Polkadot (DOT)

The chart shows that this range once played the role of the lower limit of consolidation. Buyers who bought Polkadot (DOT) in early January perceived this price zone as strong support for continued growth. Breaking the “support” down caused a sharp closure of long positions on stop orders.

Therefore, to confidently continue the positive scenario in the Polkadot (DOT) market, it is important for buyers to take control of this range. Only then can we expect another attempt to break $9.6-10 and test the mark of $12.

The DOTBTC pair price stopped on the edge

Another signal of a probable sharp Polkadot (DOT) price correction was seen on the DOTBTC pair chart:

Polkadot (DOT)

During the consolidation period, investors have been actively selling DOT since 4 January. After breaking the global trend line of the falling channel, buyers could not be fixed in the range of 0.00027-0.00028.

If buyers do not keep the current purple price zone it will return the DOT price back to the falling channel. This scenario will negatively affect the DOTUSDT pair price and may cause the correction with the breaking of the $7-7.5 range.

The sharp buyout of BTC shows the presence of strong buyers in the market. Nevertheless, haven’t sellers already gathered the strength to try to impose their game? We will check it out next week.

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Peter Oleshchuk

Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.

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