The post Can Polkadot’s reversal extend to $4? appeared on BitcoinEthereumNews.com.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion. DOT fronted a price reversal after a recent price dip to $3.6.  Demand for DOT improved, but funding rates were negative.  Polkadot [DOT] extended its Q3 losses into Q4 2023, as its bearish pressure persisted. In October, DOT shed over 15%, dropping from $4.3 to $3.6. However, after Bitcoin [BTC] recovered recent losses, the altcoin fronted a price reversal.  Read Polkadot’s [DOT] Price Prediction 2023-24 Since mid-July, sellers have overwhelmed DOT’s market. AMBCrypto’s previous price analysis of the token inclined towards extra losses if the bearish pressure persisted.  But the mid-October reversal attempt at $3.6 could set DOT to aim at the overhead resistance hurdle.  The roadblock at the $4 psychological level Source: DOT/USDT on TradingView A Fibonacci retracement tool was plotted between the lower high of $4.8 on 29 August and the recent dip of $3.6 on 12 October. The Fib tool showed that the recent DOT reversal faced overhead obstacles at 23.6% Fib ($3.9) and 38.2% Fib ($4).  The second resistance target of $4 doubled as a daily bearish order block (OB). The confluence inferred that the level could present more challenges to bulls if DOT prices exceeded $3.9.  Meanwhile, the Spot market demand improved slightly, as shown by the uptick in OBV. Besides, the buying pressure recovered, as illustrated by the uptick in RSI, but remained below the 50-mark threshold to confirm a strong bullish reversal.   However, DOT recorded limited capital inflows, as demonstrated by the southward movement of CMF.  Demand recovered, but funding rates were negative Source: Coinalyze Since 8 October, DOT’s Open Interest (OI) rates improved from $156 million to $169 million at press time. It meant that demand for DOT in the derivatives…

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Filed under: News - @ October 17, 2023 5:12 am