Polkadot is a network offering to facilitate interoperability between different blockchains. If we are to move towards a multi-chain web 3.0, this type of token will most likely become essential for all players in the ecosystem. This sector is currently under the radar of Messari, a highly reputable investment fund. Let’s see together what stands out from the chart of the star of the domain: the $DOT.
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On a decisive level against the dollar in Weekly
After having managed to extricate itself from this range which had lasted since January 2021, DOT finally suffered the chute recent from Bitcoin just like the others altcoins. We are now starting to have reactions interesting on this level of $25.50.
This level is important, it served as resistance and of support many times, making it an area of pivot.
Buyers have already defended this support recently and seem to still be defending it now. An all-encompassing weekly close on this key support would be superb.
Double bottom en Daily ?
The DOT daily chart is pretty clean. We can see a double bottom very clear, symbolizing a failure of sellers on this threshold. If an encompassing weekly is emerging, I think we could join the zone of “3D supply” (supply = offre).
We will come back to how to identify areas of supply and demand in our column Wall Street Cubs, then do not hesitate to follow us on our different networks to be kept informed!
If we get to that level, and a rejection is looming, the downtrend would hold weekly, so I wouldn’t stay in that position. On the other hand, if this zone is passed successfully, we will look again top of the range, but as long as it has not passed there is nothing to report.
It will also be advisable to remain alert on the middle of this range at $30, which has already recently served as a reaction point. The weekend generally benefits the speculation of small holders on altcoins, so why not cross it clearly this weekend!
More resilient against Bitcoin?
As I often say, watching the chart of altcoins against bitcoin is very important. Bitcoin leads the cryptocurrency market, if an alt proves resilient against Bitcoin corrections, it is very likely to be bullish against the dollar.
The DOT had a great reaction on the 5000 satoshis zone to which it had already had a great reaction. Quite similar to the chart against the dollar, the supply zone is around 7000 satoshis.
The DOT appears to be in a fairly bullish configuration in the short to medium term, and there is a strong chance that a bounce is in play here. However, we must remain wary of the establishment of a stop loss hunt, which is common in the cryptocurrency market! Also, a rejection on the areas mentioned would mean that the long-term downward trend is maintained, so you will have to think about taking your profits.
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