The volatility and a probable change in the balance of power. These opinions are suggested by the previous two trading weeks on the Polkadot (DOT) market. The unlimited growth trend initiated by buyers since December 2020 has begun to weaken.
If on 15 February, buyers started a new local growth wave from about $26, then on 23 February, buyers returned the price to this mark at high volumes. In the previous idea, we expected a test of $34-35.
However, buyers surpassed themselves and confidently raised the DOT price to $42.28. This prank of buyers almost accelerated the growth trend:
Attempt to Accelerate Growth Trend Failed – Test for Strenght Lies Ahead for Polkadot
As you can see in the chart, buyers could not find support at highs and fix above the growth channel. So without hesitation, sellers launched a counterattack, lowering the DOT price for 2 days by almost 36%.
Sellers have severely weakened the growth trend in the Polkadot (DOT) market. This is clearly seen in the price movements nature within the new growth wave.
The chart shows that the DOT price for some time was outside the trend channel and at the moment “creeps” to the trend line. The critical range for an historical high update is in the range of $39-40.
Trading volumes in the DOT market remain average. A new wave of interest in the Polkadot (DOT) project is not noticeable yet.
According to Coinmarketcap, the DOT market daily trading volume is $2,973,250,060 and close the TOP 10 largest cryptocurrencies. Therefore, despite the passivity of buyers, DOT does not lose its popularity.
DOTBTC is Overbought and Seeks Correction
If we analyze the DOTBTC market chart, we see that buyers have reached a certain liquidity range, above which they cannot pass since 20 February:
Active slow down of the DOT price by sellers, with the help of limit orders, significantly increases the probability of breaking the white wedge down.
This correction will test buyers for strength and willingness to defend the green range. Thus, we allow a local wave of fall in the DOTUSDT market. The critical point is the mark of $30.
By keeping it, buyers will be able to continue the growth trend, but not at such an aggressive angle as before.
Losing the mark of $30 will quickly move the DOT price to $23. That’s why the closing of the current trading week is crucial enough to predict the next medium-term movement of the DOT price.