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- DOT buyers produced another successful defense of the $3.6 support with a 5% price hike
- Open Interest rose by over $4 million on the lower timeframes to reveal short-term bullish strength
Polkadot [DOT] bounced off the $3.6 support level for the second time in a row within a week. The 5% bullish rebound from the support level over the past two days brought some breathing space for buyers.
How much are 1,10,100 DOTs worth today?
An earlier technical analysis by AMBCrypto highlighted the intense selling pressure on DOT with the possibility of the altcoin heading towards another price low. However, the price rebound from the support level has helped bulls in the short term, although the selling pressure still persisted.
Meanwhile, Bitcoin [BTC] continued to trade above the $29.5k support level, with bulls bidding to take the king coin back to $30k.
Can DOT buyers seize the initiative?
The sustained bearish downtrend for DOT pulled its price to new lows in October. And yet, buyers remained keen on a price reversal. With multiple support levels now flipped to resistance, buyers have a big task to embark on a sustained bullish rally.
The first hurdle for bulls lies around the $4-resistance level. A look south on the 12H timeframe showed buyers mounting a month-long defense at this level before it caved to selling pressure. This suggested that some buy orders could still exist at the level to provide needed momentum for buyers.
Thus, short-term buyers can anticipate 5% gains from its current price level of $3.7 to the $4-resistance level. Nevertheless, a price rejection around the $4-level could keep DOT in a range on the lower timeframes.
In the meantime, the CMF (Chaikin Money Flow) revealed decent capital inflows, as it climbed above the zero mark. On the other hand, the RSI (Relative Strength Index) showed that selling pressure was still present. Despite the RSI climbing strongly out of the oversold zone, it remained under the neutral 50.
Open Interest showed bulls had short-term momentum
Data from Coinalyze on the one-hour timeframe underlined DOT longs in the ascendancy. The Open Interest (OI) rose from $161.93 million to $166.12 million over the last 24 hours. This hinted at an increase in long positions, which might mean a further price incline.
Read Polkadot’s [DOT] Price Prediction 2023-24
Likewise, the spot CVD was also on the rise, highlighting demand flowing in for DOT. As such, a bullish scenario remains possible in the short term, despite the long-term bearish bias.