Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Price rejection at resistance at $4.3 kept DOT in a range.
- Open Interest and Spot CVD highlighted the strong demand for DOT.
Dot [DOT] extended its range formation between the low range of $3.95 and the high range of $4.3.
Read Polkadot’s 2023-2024 price forecast
On October 3, AMBCrypto explored the possibility of a short-term rally to the $4.3 level before a new wave of selling pressure. This price projection was validated when DOT reached the $4.3 price zone before falling 6% to the $4 price level over the past 48 hours.
This price battle between buyers and sellers, along with Bitcoin [BTC] If it stays above $27.5k, buyers could make another attempt to cross the $4.3 price threshold.
The support level comes to the rescue of the bulls again
Source: DOT/USDT on Trading View
Strong capital inflows in early October, as highlighted by the CMF (Chaikin Money Flow), helped the bulls rally towards the $4.3 resistance level. Despite the price rejection at the level that dropped the DOT to $4, the CMF still remained above zero, demonstrating continued capital inflows.
The 12H chart showed that DOT’s market structure remained bearish, with the RSI (Relative Strength Index) moving from the highest level (bullish) to the lower level (bearish). This indicated that buyers needed to reignite bullish momentum or continued selling pressure could breach the support level.
If bulls manage to break the lower low in the $4.3 price zone, further gains could be made from $4.4 to $4.6. On the downside, a seller breach of the support level would send DOT to a new yearly low between $3.6 and $3.8.
How much is 1, 10 or 100 DOT worth today?
Futures market data showed that another rebound could be imminent
Source: Coinalyse
Dates of Coinalyse showed that the OI (Open Interest) has been on an upward trend since early September despite the varying price action. This indicated interest in a continued price recovery for DOT.
Furthermore, the Spot Cumulative Volume Delta (CVD) reflected strong demand with a steady upward movement. This could see a sustained bullish recovery for DOT in the near term.
