The monthly Polkadot (DOT) price correction which took place in a wide range of $26.15-39.2 theoretically ended on 2 April. Buyers managed to break the problem range of $38.5-39.2, which sellers carefully kept for almost a month.
Trading volumes increased insignificantly, the DOT price growth looked uncertain. In the previous article, we wrote about the next growth target of $54. However, after testing the mark of $46.8, the DOT price was forced to make a correction:
BTC Spoils Intentions of DOT Buyers
The main stimulus of this correction was BTC. Its price has fallen by 5% over the past two days. Although the BTC impact on the crypto and DeFi market has been steadily declining since 31 March. And DOT’s dependence on the main cryptocurrency is quite high.
As we see in the chart, the Polkadot (DOT) price stopped in the previous liquidity zone, arranging a strength test for buyers. Nevertheless, buyers passed the first stage of the test successfully.
But it is too early to talk about a confident victory and market dominance. If we look at the situation on the DOT market in the 4-hour timeframe, it becomes noticeable that the final momentum of the price fall was after breaking the local level of $41.35.
Mark of $42 Should Play a Key Role DOT Market
It was after 3rd strike on this mark that buyers surrendered and moved on to defend the next more important range. At the moment, the DOT price is trying to bounce, but this counterattack does not look too lively. With the help of five 4-hour candles, buyers could not get close to the critical local mark of $43.
Therefore, we would not rush to buy DOT right now. Even with a positive scenario of the continued growth of the DOT price, the probability that the price return to the range of $38.5-$39.2 is quite high.
It is this local correction, at low volumes and without aggressive candles that will confirm that the strength of sellers has been exhausted.
However, a new wave of the DOT fall from $42.35 at increased volumes will take away buyers’ control over the range of $38.5-39.2. Thus, a new consolidation channel in the DOT market with the final fall target of $30-31 forms.
DOTBTC Chart Predicts DOT Price Fall
The probability of such a scenario is confirmed by the DOTBTC pair chart:
As we can see in the chart, buyers failed to fix above the previous high. So the price may continue to move within the black wedge.
Given the probability of the BTC price correction continuation to the range of $54,200-54,500 – this scenario cannot be ignored. This week is a week of trials. Let’s see how the Polkadot (DOT) market will cope with it.