Polkadot sellers to target $4.8 next?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• DOT bulls lost control after retesting the June high of $5.5.
• Spot CVD declined, but Open Interest rates steadied.

Polkadot [DOT] sellers have consolidated their control since price rejection at the June high near $5.5. A short foray above the June high was a liquidity hunt as DOT hit $5.64 on 3 July before entering a pullback. 

Read Polkadot’s [DOT] Price Prediction 2023-24 

At the time of writing, DOT’s price was $5.022, below the March low and former support of $5.2. Another price rejection at the March low further reinforced sellers’ leverage, setting them to focus on the $4.8 support for extra gains. 

On the development front, a new version – Polkadot 2.0 featured in recent talks, but the narrative hasn’t changed DOT’s price trend by the time of writing. 

Will the immediate support hold?

Source: DOT/USDT on TradingView

The impressive recovery from June hit a snag at retesting the June high. The price rejection saw DOT reverse part of the recent gains, shedding over 10% after dropping from $5.64 on 3 July to $5.02 at the time of writing. 

The drop flipped the March low and May support of $5.2 into a resistance. So far, bulls failed to reclaim, giving sellers more edge to seek gains at the next support level – $4.87. Although a liquidity hunt beyond $4.8 can’t be overruled, bulls could attempt to secure the support. 

So, a rebound at $4.87 and a confirmed uptrend could be a buy signal, especially if BTC doesn’t drop below $30k. In such a case, the immediate target will be $5.2, while the June high will be a secondary target. 

Conversely, BTC faltering below $30k could set DOT to further aggressive sell-off. A retest of $4.3 could be feasible if bulls fail to hold the $4.87 support. 

The RSI failed to climb above the neutral position while OBV wavered above -80 million, denoting demand waned in the past few days. 

Open Interest rates steadied

Source: Coinalyze

On the 1-hour chart on Coinalyze, a crypto derivative data tracking platform, the Open Interest (OI) dropped but steadied afterward. At the time of writing, the OI rose to $131 million, down from $127 million. 

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However, the declining Cumulative Volume Delta steadied in the past few days, meaning selling pressure eased. Taken together, the metrics could point to a possible price pivot and likely rebound at $4.87 support. 

But BTC’s foray into $29k could see the support cracked too. So, bulls should wait for a confirmed uptrend and a BTC price above $30k before seeking re-entry.