Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
DOT’s bullish advance was limited by a bearish order block, despite strong upward momentum. Open Interest maintained an upward movement, while market speculators supported the bullish trend.
Dot [DOT] buyers were persistent in July, resulting in favorable price increases. This has maintained the altcoin’s upward trajectory despite the general market correction led by Bitcoin’s [BTC] fall below $30k.
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Polkadot’s on-chain development activity boomed in the second quarter of 2023, leading to the addition of four million unique addresses. Can this statistic help the upward movement?
The $5.23 support level remains crucial for bulls
The bullish strength at the $5.23 support level was highlighted by strong bullish candles in the lower time frames. This helped support DOT’s upside momentum on the higher timeframes.
Despite the uptrend and bullish market structure, the bulls found the bearish order block between $5.63 and $5.88 a difficult hurdle to cross. However, BTC recovering the $30,000 price level could trigger a bullish break above the bearish OB.
In the meantime, indicators on the chart showed bullish intent. The Relative Strength Index (RSI) stood at 58 to highlight growing demand. The Chaikin Money Flow (CMF) remained positive, although it fell slightly from +0.17 to +0.10.
A drop below the $5.23 level would be a sign of a bearish takeover in the near term given its existence as a strong defense for bulls. On the other hand, if bulls can overcome the bearish OB, DOT could rise to $6.1-$7 in the near term.
Rising Open Interest points to growing bullish confidence
How much are 1,10,100 DOTs worth today?
Open Interest (OI) data from Coinalyze showed growing bullish conviction. The OI has been on a slight upward slope since early July. In the past 24 hours, it registered a sharp $10.4 million gain, indicating that buyers are willing to support the uptrend.
Similarly, the funding rate was positive during the same period. Together, it indicated that DOT bulls were actively chasing a sustained bullish rally towards the April high of $7.
This post Polkadot: This hurdle is stopping DOT from reaching $7
was published first on https://ambcrypto.com/polkadot-this-hurdle-is-keeping-dot-from-reaching-7/