Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- DOT was rejected at a Fib level of 23.6% ($5,378) after BTC dipped below $27k.
- Volume fell below the level at the end of April; sentiment has improved slightly.
Polka dots [DOT] short-term downward trend continues Bitcoin [BTC] price fluctuations. At the time of writing, BTC lost $27,000, setting DOT for price rejection at the 23.6% Fibonacci retracement level ($5,378).
Read Dot [DOT] Price prediction 2023-24
DOT is constantly falling after losing the psychological level of $7 on April 18. Price action since late April marked a descending parallel channel (white).
A bear haven, or do bulls get a reprieve?
Source: DOT/USDT on TradingView
A Fibonacci retracement tool (yellow) was placed between the recent highs and lows of April 26 and May 12, respectively. Based on the tool, the price has fluctuated between 38.2% ($5,539) and 0% ($5,117) Fib levels since May 8.
DOT’s May 12 joint rally faced price rejection at the 23.6% Fib level ($5,378). But the decline has eased near $5,233 as of writing.
If short-term bearish pressures continue, DOT could overcome the $5,233 hurdle and settle at a mid-range level near $5,172, $5,117, or the low range of $4,939. These levels could act as more short selling targets.
Alternatively, bulls can gain leverage in the short term if price closes above the 23.6% Fib level ($5.34). Such a move could tip them to clear the bearish order block at $5,433 and target the 38.2% Fib level ($5,539).
Meanwhile, the RSI was below the mid-range while CMF (Chaikin Money Flow) slipped below zero – a dip in buying pressure and capital inflows.
Volumes fell slightly; feeling improved
Source: Sentiment
How many are 1,10,100 POINTS worth today?
According to Santiment, DOT volume at press time (98 million DOTs) was below its April high of 307 million. Despite the volume decline, weighted sentiment pulled out of deep negative territory, confirming that investor confidence has improved.
However, fluctuating trading volumes, funding rates and BTC prices could undermine a strong recovery for DOT. Therefore, it is worth following these fronts for optimized trades.
