Polkadot’s near-term bullish outlook may depend on these key levels

Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

Bitcoin and most large and medium-sized altcoins collapsed last week as news of a Russian invasion surfaced and global markets reacted with fear. In recent days, however, the price has moved back above some key short-term levels.

Polkadot has also seen some demand in recent days after falling below $15 recently.

DOT-2 hour chart

Source: DOT/USDT on TradingView

A series of Fibonacci retracement levels (yellow) was plotted based on DOT’s move from $23.19 to $15.8. It presented the USD 13.79 level as a place where bulls could potentially enter the fray. DOT didn’t quite hit these lows but stopped at $14.2 before seeing a jump.

At the time of writing, the short-term market structure was bullish. This was because the price had climbed above the $17.1 (cyan box) area and retested it to find demand. Additionally, the $18.6 area has acted as an offer on the hourly timeframe for the past two weeks. However, the price has also moved above this level in recent hours.

Therefore, upward movement can be expected in the coming days, targeting $20.5 and $23.2. Before that, a drop to $18 or $17.5 could occur and would be a buying opportunity.

rode

Source: DOT/USDT on TradingView

The RSI has remained above the neutral 50 for the past few hours demonstrating that bullish momentum has remained strong. Chaikin cash flow also remained above +0.05 to indicate significant capital flow to the market.

The OBV has been in a steady downward trend for the past few weeks. However, in the past five days, the OBV has seen a bounce and registered a higher low to indicate buying volume.

Conclusion

The $17.2 area was flipped to demand and the price saw an hourly session also close above $18.62. A pullback to the $17.5-$18 area, if seen, would likely be followed by another leg up for Polkadot.

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