The end of the current trading week in the DOT market cannot be called successful for investors. Indeed, the Polkadot (DOT) price fall by 35% since 18 April has had an unpleasant effect on investor sentiment.
In the previous article, we clearly described this scenario and the buyers’ weakness at the historical highs of the DOTUSDT market.
The latest attack by buyers ended with the historical high update. However, it cost buyers a lot of effort. We can even say the latter. If you look at how the daily candle closed, and where exactly the DOT price stopped on 17 April, it becomes clear that sellers took the initiative in the market a little earlier:
Passive Polkadot (DOT) Price Turns Offensive for Market
As we see in the chart, buyers’ attempt to start a new active growth wave ended with a big pin-up and a test of the trend line of the black consolidation channel. The next day, sellers managed to break the important price zone of $38.5-39.2. After that, buyers stopped fighting.
Trading volumes during the fall wave, which began on 18 April, are much higher than during the last growth wave. Sellers are beginning preparations for a global correction of the DOT market.
Also, they have formed a new critical point, below which the DOT market will absorb darkness and poverty in the medium term. This is the mark of $26.6.
Confirmation of this negative scenario will be a failed attempt by buyers to fix above the range of $38.5-39.2. It is from this range that we will expect a new powerful fall wave in the event that buyers show weakness. Though, at the moment, this scenario is optimistic.
DOTBTC Pair Chart is Frightening Due to Probable Uncorrected Fall Continuation
If we look at the DOTBTC pair chart, we see that sellers were able to cross the lower trend line of the black wedge, which was formed in February 2021:
In addition to this trend line, we see the range of previous historical high, from which buyers began to actively buy DOT. Although analyzing the volumes by which sellers managed to lower the price so easily, we are not sure yet that buyers will have enough strength to absorb the entire market offer.
Given the mood in the BTC market, which had a particularly negative impact on the DOT price, the fall wave may continue without correction.
Therefore, at the moment it is better to calmly watch the emotions in the DeFi market and see what will happen in the most mystical time in the cryptocurrency market – on the weekend.