Polkadot’s [DOT] recovery is likely: Can bulls target pre-FTX levels?

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion

• DOT discovered a gentle floor, and worth restoration could possibly be doubtless.
• DOT’s Funding Price declined, however there was a slight enchancment at press time.

Polkadot [DOT] bulls secured a gentle maintain at $6.178. At press time, DOT’s worth was $6.277 with a flash of inexperienced, indicating a restoration could possibly be doubtless. 

Regardless of January’s rally, DOT is among the few belongings that hasn’t hit its pre-FTX ranges. Nevertheless, DOT may hit its pre-FTX worth within the subsequent few days/weeks, particularly if subsequent week’s FOMC announcement is dovish. 

Learn Polkadot [DOT] Value Prediction 2023-24

The pre-FTX degree at $7.127: Is a retest doubtless?

Supply: DOT/USDT on TradingView

On the 12-hour chart, the Relative Power Index (RSI) was 61, exhibiting a bullish DOT. The On Stability Quantity (OBV) and the Chaikin Cash Circulation (CMF) had upticks, indicating that buying and selling volumes elevated barely, thus serving to strengthen the DOT present market. 

If the development continues, the restoration’s momentum will enhance, permitting bulls to focus on the overhead resistance at $6.841 and the pre-FTX degree of $7.127. Nevertheless, bulls should clear the bearish order block at $6.566 to proceed the upward momentum. 

Alternatively, bears may overwhelm bulls, given the low buying and selling volumes. Such a transfer may plunge DOT under the $6.178 assist, invalidating the bullish bias described above. However the drop may settle on the 100-period EMA (exponential transferring common) or the assist vary of $5.600 – $5.800 (inexperienced zone). 

Is your portfolio inexperienced? Take a look at the DOT Revenue Calculator

DOT’s sentiment and Funding Price was unfavourable, however …

Supply: Santiment

A pointy drop in Funding Price round January 23 coincided with DOT’s current prime. Additional worth drop on January 24 noticed one other decline in Funding Price, indicating falling demand within the derivatives market. 

Nevertheless, on the time of writing, the Funding Price recorded a slight enchancment because it moved upwards. The advance displays the value restoration noticed at press time, and extra demand within the derivatives market may prop up DOT’s worth.

Nonetheless, DOT’s sentiment remained unfavourable, exhibiting buyers have been nonetheless uneasy with the asset. However the growing open curiosity (OI), as evidenced by Coinglass, may additional enhance the value restoration.