Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The OBV questioned the question behind DOT. Polkadot prices trended higher in July and a breakout was likely approaching.
A recent report highlighted a lot of good news behind Polkadot’s bullish price movement [DOT] in the past three weeks. The price action was also positive, with a bullish structure break on June 21. A rally to the $5.6 and $5.75 resistance levels followed this event. This supply zone extends to $5.8, but buyers were relentless in July.
Realistic or not, here is DOT’s market cap in terms of BTC
Before we examine the strength of the bulls, it should be remembered that Bitcoin [BTC] and Ethereum [ETH] saw relatively large short-term corrections after attempting to climb higher last week. Therefore, there may be some lower selling pressure behind the biggest crypto assets in the coming days, which could also translate into a negative reaction for DOT prices.
The bearish order block has not broken yet, but the bulls have already made their intent clear
Source: DOT/USDT on TradingView
On the other hand, if BTC can stabilize or even climb back above $30.8k, Polkadot would likely follow suit. DOT has a bullish market structure and an uptrend on the daily chart. There was a bearish order block (red box) in the $5.3-$5.58 area, which has not been broken by a daily trading session.
The RSI showed bullish momentum, but the OBV did not show a strong trend in July. This indicated a lack of buying volume, which could mean bullish exhaustion. Given the importance of the $5.22 level since May, a drop below this support would be a sign of bearish pressure. Further losses in the form of a plunge below $5 could indicate bears are dominant. On the other hand, a breakout above $5.6 will likely see the DOT rise to $6.2 and $7 over the next two months.
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The slow rise in DOT’s Open Interest showed that bullish conviction was creeping back into the market
Source: Coinglass
In mid-June, Open Interest was a dim shadow of what it had been in April as OI began to trend downwards. This was a sign of bearish sentiment, but started to see a reversal as June progressed.
Since July 6, the OI has been rising again. It was not fiery, suggesting that the flow of capital into the DOT market is not as strong as it was in early April. If this starts to change and is accompanied by a move above the $5.6-$5.8 region, it would be a clear signal that the bulls are once again rallying towards $7.
This post Polkadot is about to start another rally when…
was published first on https://ambcrypto.com/polkadot-on-the-verge-of-initiating-another-rally-as/
