$15.86 or $17.54? Can DOT traders expect to see demand in the coming week?

Disclaimer: The findings of this analysis are the authors’ sole opinions and should not be considered investment advice.

In the hours leading up to the time of writing, Bitcoin rose sharply from $34.8k to $39k – but was unable to break through this resistance level despite pushing north as $39.8k. In his footsteps, Polkadot also followed a relief from the local lows at $14.2 and traded at $16.08 during press time. However, the market structure remained bearish for Polkadot in the near term. Therefore, short opportunities may arise, while a session that closes above $17.54 could signal a shift towards bullish.

DOT-1H

Source: DOT/USDT on TradingView

The short-term range that DOT traded in about two weeks ago (orange) failed to hold and the lows of the range flipped from support to resistance a week ago. Since then, DOT has registered a series of lower highs and lower lows on the charts.

In addition, the price has tested the $16.6-$17.4 area several times to try and break through, but sellers have remained strong. This suggested that DOT’s upward move of $14.2 was likely just a move in search of liquidity for its next downward leg.

The Fibonacci retracement levels, based on DOT’s shift from $23.19 to $15.8, presented the renewal levels of 27.2% and 61.8% at $13.79 and $11.23. Also, the $15.86 has acted as a support for the past few hours.

rode

Source: DOT/USDT on TradingView

The RSI has surged above the neutral 50, while the Awesome Oscillator has also surged above the zero line for the past few hours. This was in response to DOT’s nearly 15% gain in just over twelve hours. The OBV also saw an upward spike, but the downward trend on the OBV made it clear that sales volume has been dominant in recent weeks.

Conclusion

The indicators showed some reaction to the recent gains for DOT, but the market structure remained bearish. A move towards the $17.2 area could present an opportunity to short. Similarly, if the price drops below USD 15.86 again, consideration may be given to entering short positions on DOT targeting the Fibonacci extension level of USD 13.79. On the other hand, if DOT were to manage to regain $17.54 in the coming days, the possibility of a shift in momentum from bearish to bullish would arise.

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