Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.
USDT Dominance is a metric of the share of the crypto market cap held by USDT. Up to now two weeks, this metric was in an uptrend. This confirmed market contributors more and more selecting to carry the USDT stablecoin reasonably than any crypto asset, and highlighted intervals of promoting strain.
Polkadot has additionally seen sturdy bearish momentum in current days because it crashed by one other help zone on the value charts.
DOT- 12-Hour Chart
Supply: DOT/USDT on TradingView
On the 12-hour chart, there have been many ranges that had served as help previously three months that had been ultimately flipped to resistance.
Crucial zones of help had been highlighted by the pink field. The $9.5 zone was an space that the bulls completely wanted to push previous. The $10 psychological stage was simply overhead, and the $10.57 technical stage was solely barely additional north.
After the sudden plummet in early Could, DOT consumers desperately tried to defend the $9.5 area. Nevertheless, June introduced extra worry with it and the bulls had been quickly overwhelmed. Thereafter, the value sank to the $6.6 mark, the place it tried to bounce again a number of occasions.
Probably the most profitable of those makes an attempt managed a rally to $9.68. Though it measured 43% in magnitude, it was nonetheless a failed rally because it did not flip the longer-term market construction to bullish.
In current weeks, the value fell beneath the $6.6 space as effectively, and on the time of writing noticed a bounce from $6 to succeed in the previous help area once more.
Therefore, greater timeframe merchants can search for shorting alternatives. Based mostly on the Fibonacci extension ranges (yellow) a drop to $6 and even $4.94 might happen within the coming weeks.
Rationale
Supply: DOT/USDT on TradingView
The indications confirmed a bearish image as effectively. The RSI fell beneath impartial 50. Even through the surge to $9.6, the RSI was unable to push previous the 60 area and present sturdy bullish momentum on the H12 timeframe. The OBV additionally fell beneath a stage of help.
The Directional Motion Index noticed the ADX (yellow) at 24.5 and -DI (pink) at 19.5. Therefore the indicator additionally stood on the verge of exhibiting a powerful downtrend in progress.
Conclusion
Intraday merchants can search for shorting alternatives behind Polkadot after an examination of the H12 timeframe confirmed a bearish bias. The promoting strain behind Bitcoin previously two weeks meant one other transfer downward was possible.
