Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
On lower time frames, there has been some indication on the charts in recent weeks that Polkadot saw some compression in its price action. This could continue for a few more days before the DOT gains volatility in both directions. In the longer term, however, there may be an accumulation phase in play for Polkadot. The indicators have not yet shown strong buying pressure and the bearish market structure has remained bearish.
Polkadot has suffered huge losses since November when it traded near the ATHs at $54. For the past three months, the $16.81 level has served as a support. Over the past month, the $15.88 mark saw a daily session close. However, the price has registered higher lows in recent weeks.
Was it enough to stop the downtrend? Can DOT Push Higher From Now On? It wasn’t clear yet. $19.61 and $20.34 are levels where DOT should climb upwards from now on, to give an idea of a bullish tendency for Polkadot.
In the long term, the downward trend is not broken yet, but it could happen in the coming days. Even beyond USD 20.34, the USD 23.1 area would likely still offer strong resistance.
The RSI poked its head above the neutral 50. This could be an early indication that the long-term trend is about to shift. The Awesome Oscillator also crossed above the zero line, which can again be seen as a signal of a shift in bias.
However, there is still a long way to go. The OBV has been falling since November, but has offered the opportunity for buyers to slowly enter the market over the past two weeks. However, they were not yet the dominant side.
The price action and indicators showed a faint possibility of a shift in long-term preference from bearish to bullish. It was quite early to tell, and $20.34 and $23.1 remain levels to beat. General market conditions still reeked of fear and uncertainty. Therefore, risk-averse investors could wait for buying opportunities. Flipping $23.1 to support would be an encouraging sign for bulls and a buying opportunity in preparation for a rise.