Polka dot [DOT]: Why bears shouldn’t get too excited about the $5,272 barrier

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only

  • The DOT can clear the $5,272 barrier and target $5,490
  • DOT has seen an increase in development activity but fluctuation in trade volumes

Polka dot [DOT] increased by over 23% in the past two weeks. It rose from $4,271 at the end of last year to a high of $5,272 at the time of publication. But it was still shy of December’s high of $5,730, with barriers at $5,272 and $5,681 posing challenges for the bulls.

At the time of writing, DOT was trading at $5,235 after a recent rejection of $5,272. Likewise Bitcoin [BTC] He received a rejected price of $19.05K and had a hard time getting over this hurdle.

As the risks of a further BTC rally after the seasonal easing of the US inflation rate rise, the DOT may attempt to breach the $5,272 barrier.

Read polka dots [DOT] predict the price 2023-24

Hurdle 5272 dollars

Source: DOT/USDT on TradingView

The RSI has gradually moved into the overbought zone from the oversold zone, indicating intense buying pressure in the past two weeks. Similarly, On Balance Volume (OBV) made higher highs, indicating that volumes increased to add to the upside.

The above momentum gives the bulls the upper hand as they may try to clear the $5,272 barrier. This move could see DOT bulls target the $5,490 resistance, which is a potential gain of 3.8% if successful.

But the bears were in sight around the $5,272 barrier, and they would come in droves if the bulls failed to clear the barrier. As such, the bears could push the DOT price below $5,079, invalidating the bullish outlook outlined above.

Such a decline might prompt the bulls to look for new support at $4,977 or $4,886. These levels can act as short selling targets.

Is your wallet green? paying off DOT Earnings Calculator

The Ministry of Transport witnessed an increase in development activity and a decline in the volume of trade

Source: feeling

According to Santiment, DOT development activity has increased significantly over the past two weeks. Besides the bullish BTC, the positive metrics mentioned above may have fueled the recent DOT price rally.

On the other hand, volume is down at press time and could further undermine the bullish momentum. However, this may change if BTC crosses $19.05K.

Additionally, the DOT network has seen an increase in NFT trading volumes since Christmas. This could lead to more active users of the network and increase its value in the long run.

However, investors should focus primarily on the Bitcoin price movement to determine if DOT can overcome the current trading hurdle.

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