Polkadot – Assessing the Chances of a 10% Price Increase This Week
Journalist
Posted:
- Polkadot exhibited some bearish indications; however, the Chaikin Money Flow (CMF) suggested an influx of buying pressure.
- The key support and resistance levels at $4 and $4.6 are expected to hold in the upcoming weeks according to the Volume-Weighted Average Price (VWAP) tool.
Polkadot [DOT] rebounded from the $4 support level earlier this month, but its upward momentum has diminished recently. At present, it appears to be retreating back towards that same support level.
The liquidity chart indicated a potential for a swift ascent in DOT to capture additional liquidity before any possible downturn – should traders enter long positions now or wait for a rebound to consider shorting?
The volume profile indicates DOT is currently within the resistance zone
Source: DOT/USDT TradingView
The apparent volume profile for DOT extending back to early July highlighted that the point of control was positioned at $4.556. The price had been previously rejected from this point and was trending down toward another high-volume node at $4.224.
Both the Directional Movement Index (in red) and ADX (in yellow) fell above 20 on the Directional Movement Index scale, signifying that a pronounced downtrend was in progress. The price trajectory has been declining since June as DOT recorded a series of lower highs and lower lows.
A contrasting indicator is CMF at +0.11, which signifies substantial capital inflow into the market despite prevailing trend signals suggesting otherwise. This uptick in buying activity presents an encouraging outlook moving forward.
Pivotal zones may foster range formation.
// Adjusted language for clarity
An analysis by AskFX revealed two noteworthy liquidity clusters on Polkadot’s 1-month liquidation heatmap; most significantly, there exists a concentrated range between $4.6-$4.7 coinciding with notable activity around the established $4 support region outlined in our predictions for Polkadot [DOT] through 2025.”
// Altered sentence structure
This range holds robust potential and could draw more pricing action before reverting back towards pooling around that significant liquidity near $4 again shortly thereafter ultimately placing Polkadot within an effective trading band of approximately $$.$$ -$$$.$$ over coming weeks ahead moving forward!”
Disclaimer: The content provided here is intended solely as informational commentary rather than financial or investment advice; it reflects purely subjective analysis by its author alone without endorsement elsewhere!
