Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Selling pressure pushed DOT to December 2022 lows.
- Long futures market positions flashed positive for bulls.
The crypto market continued to react negatively to the recent regulatory crackdown on cryptocurrencies. Dot [DOT] was no different as the price took a 13.8% nosedive in the past 24 hours.
Read Polka Dots [DOT] Price Forecast 2023-24
Bitcoin [BTC] also fell to $25.6k at time of writing, with the market largely dominated by bears.
Can the $4.24 support level halt the bearish momentum?
Source: DOT/USDT on trade view
DOT has been on a massive bearish slide since April 18 after the price rejected at the $7.02 resistance level. This caused the price to break through the $6.12 support level for a bullish strengthening at the $5.23 support level.
The price has been trading at the $5.23 support level for a month with the bulls holding this level. However, low buying pressure did not allow bulls to stage a significant rally. Recent bearish activity in the market gave DOT sellers another chance to break past the key support level.
A successful support level break caused DOT to fall to the December 2022 low of $4.24. However, the price quickly bounced off the level, highlighting the bullish dominance in that price zone.
The short-term bullish defense was echoed by the Relative Strength Indicator (RSI) and the On Balance Volume (OBV). The RSI recorded a slight increase after the aggressive dip into the oversold zone. The OBV also recorded a volume increase of 759.42,000.
However, the positive signals for bulls at this level did not diminish the significant bearish dominance on DOT. Further declines from Bitcoin could lead sellers to register more downsides.
How much are 1,10,100 DOTs worth today?
Longs took a beating in the futures market
Source: Coinglass
The four-hour liquidation heatmap of Mint glass showed huge losses for longs in the futures market. $263.41k in long positions were liquidated, representing 89% of total liquidations.
However, open positions on the long/short ratio at the time of writing told a different story. Longs had a 51.64% lead over the four-hour time frame. This hinted that market speculators were actively expecting the $4.24 support level to hold in the near term.
Source: Mint glass