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Polkadot’s lower price action in the time frame had a bullish bias. With strong resistance levels overhead, it could take a while for a decisive break to become a reality.
Global investors await the next release of US CPI data on July 12. This meant crypto asset prices could see increased volatility in the near term as investors and traders race to digest and price the data. So is Polkadot [DOT] approached a critical resistance level in recent hours.
Realistic or not, here is DOT’s market cap in terms of BTC
Polkadot saw many positive developments in the second quarter of 2023. However, despite the rally in June, the market structure was not yet bullish in a higher time frame. What can traders and investors watch out for in the coming days?
Above us is a large resistance zone
The 4-hour chart showed that DOT’s price action has been bullish for the past two weeks. The CMF was well above +0.05 highlighting strong capital inflows into the Polkadot market. The RSI also turned the neutral 50 into support on July 11 and continued to rise. This was a sign of bullish momentum.
Another sign of bullish momentum can be seen in the price action itself. After falling to the $5 level on July 7, DOT consolidated there until July 10 before returning to the near-term resistance of $5.22.
At the time of writing, Polkadot was trading just above that level, underlining its bullish intent. Still, the entire $5.2-$5.8 region is fringed with bearish fortifications. The May 8 price action showed that this region was defended by the bulls for almost a month before the bears finally won the battle.
Hence, heading above the $5.22, $5.45 and $5.56 levels are likely to face significant resistance. The $5.74-$5.81 zone was also a resistance from the end of April. The bulls will have to work hard to push prices past the sellers.
The positive slope CVD will be encouraging for DOT buyers
Coinalyze’s 1-hour chart showed that Open Rates had been slowly rising since July 7. However, it did see major retracements, such as the one on July 10.
How much are 1,10,100 DOTs worth today?
The conclusion was that speculators were not collectively optimistic, but as the OI limped higher, there was a steady flow of capital.
The spot CVD has also increased since July 10. If the buyers can support demand, it is possible that DOT could climb above the resistance levels above it. Still, the bullish advance in the coming days is more likely to be a slow war of attrition than a blitzkrieg.
This post Can Polkadot Overcome $5.8 Resistance?
was published first on https://ambcrypto.com/can-polkadot-overcome-the-5-8-resistance/