Can FOMO Support DOT’s Price Action After Its Failed Breakout Attempt
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- The price action of DOT experienced a pullback after a previous uptrend failed to generate sufficient liquidity.
- Identifying demand levels or selling pressure will be crucial, particularly if market enthusiasm continues to grow.
Polkadot’s native cryptocurrency DOT may be poised for a bull run as market enthusiasm resurfaces. However, the altcoin recently faced a failed attempt at breaking out from its wedge pattern.
Since December, DOT has been in a general bearish trend, although it has demonstrated support at the $6 price level thus far. Conversely, the upper boundary of this trend remains constrained by a descending resistance line. These support and resistance levels illustrate the wedge pattern that DOT has been navigating for seven weeks now.
Source: TradingView. p > div > The drop observed over the weekend emphasizes the insufficient demand needed to facilitate a substantial upward movement. p >
The market conditions within the past 48 hours indicated renewed excitement and positive liquidity flow across certain altcoins. Will DOT make another attempt? With reduced pricing on DOT, buyers have had opportunities to purchase closer to support levels. p >
A resurgence in interest from traders and investors is anticipated to bolster an impressive comeback for DOT. Notably, on January 11th, address activity hit its lowest point in three months with just 5,154 addresses recorded. p >
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The open interest surrounding DOT grew from $439 .02 million on January 14th reaching $524 .36 million by January 18th; however during writing it retraced back down sitting around $475 million . According Coinglass data indicates that there were spot outflows exceeding $10 million over these same past few days aligning with declining altcoin values combined alongside negative open interest levels .
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dot spot flows suggest traders are still aiming primarily towards short term profits through liquidations /speed bursts offering definite light//debt esters being traced along down affected/influenced;/ dissimulator;
Time frame realizations indicate slightly below dropped under three millions sportiest/longs positions disappear rapid covering/gaining needs.;little—sufficient allocations ever evident appeared signs showing earn contractions merely evolving ahead forecasts forecasting changes/upcoming trends coming/
