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![Polkadot [DOT] at Value Area Lows; traders can put a stop-loss just above…](https://cryptonoiz.com/wp-content/uploads/2022/05/PP-1-DOT-cover-1000x600.jpg)
Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
Within the time because the Terra crash and the concern that gripped the market on 12 Might, Polkadot costs have stabilized considerably because the token established a variety across the $10 mark. Nevertheless, this was a great distance from the $50 highs it as soon as traded at.
The relentless downtrend held agency on increased timeframes and appears to have begun to maneuver DOT costs decrease on the decrease timeframes as properly.
Can Polkadot see a rally from the vary lows, or was this an early signal that additional ache was doubtless for Polkadot buyers?
DOT- 1 Hour Chart
Supply: DOT/USDT on TradingView
The Quantity Profile Seen Vary software was used on the hourly chart of DOT. It confirmed the Level of Management to lie at $9.98 and denoted the extent the place the most important portion of buying and selling has occurred within the seen vary on the chart. Furthermore, the Worth Space Highs and Lows had been proven to lie at $11.53 and $9.31 respectively. These ranges, respectively, are locations to look to promote and purchase a range-bound asset.
Polkadot was buying and selling inside a variety from $10.57 and $9.27 previously ten days, however at press time, the value appeared more likely to slip beneath the $9.2 assist space as soon as extra. The weekend typically has decrease buying and selling quantity, therefore a pointy drop can’t be dominated out.
For the reason that market construction was bearish, a transfer additional south can be the expectation till DOT can shut a session above the $9.98 mark.
Rationale
Supply: DOT/USDT on TradingView
Up to now two weeks, the RSI has oscillated from the 25 mark to the 70 mark, and the impartial 50 was flipped from assist to resistance a number of occasions inside a number of days. This typically happens when the value strikes sideways, and indicators the dearth of a robust pattern.
The A/D line has additionally been transferring sideways, after a pointy drop earlier in Might. Therefore, since 12 Might, neither the patrons nor the sellers have been dominant. The MACD confirmed a extra bearish outlook, because it remained beneath the zero line for essentially the most half. On the time of writing, it stood slightly below the zero line, which indicated impartial momentum.
Conclusion
Polkadot was buying and selling simply beneath the Worth Space Lows at $9.3, however this was not a purchase sign by itself. The $9.3-$9.5 zone has been robust resistance previously week, due to this fact, a brief place will be entered, with stop-loss simply above $9.5 and a take revenue at $8.6 and $7.5.
