• Thu. Feb 29th, 2024

Polkadot (DOT): Why Intraday Traders Might Watch for Shorting Opportunities

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Sep 24, 2022

USDT Dominance is an index of USDT-held cryptocurrency market cap share. This metric has maintained uptrends within the previous two weeks. That indicated that market players have increasingly preferred to hold USDT over other assets and amplified selling pressure.

Digital tokens such as Polkadot have also witnessed massive bearish strength within the past few days, with DOT losing another support level on its price charts.

Polkadot 12Hr Timeframe

The 12hr chart had several zones that had acted as support over the last three months but finally overturned to resistance. Meanwhile, the red box highlighted the most crucial support zones. Bulls had to overcome the $9.5 mark for near-term upsides.

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Meanwhile, the psychological at $10 remained overhead, while extended north would see the asset exploring the technical level at $10.57. Polkadot bulls desperately attempted to defend $9.5 following early May’s sudden dip. Nevertheless, June triggered escalated fear with the mark, overwhelming buyers within no time.

That saw DOT’s price crashing towards $6.6, where the altcoin attempted to rebound several times. The most successful attempt catalyzed an upside move to $9.68. Despite measuring 43% in magnitude, the rally could not overturn Polkadot’s long-term market picture to bullish.

The latest weeks saw the price plunging below $6.6 and recorded a rebound from $6 during this publication to hit its former support level again. Thus, high timeframe investors might watch for shorting opportunities. According to the FIB extension zones, DOT might decline to $6 or even $4.94 over the upcoming weeks.

Reasoning

Polkadot indicators revealed a bearish outlook. The Relative Strength Index plunged beneath the 50-neutral. Moreover, the RSI failed to climb past 60 to confirm 12hr chart’s massive bullish strength as the price soared to $9.6.

Also, the on-balance volume dipped beneath a support zone. The Directional Movement Index had the ADX at 24.5, while the –DI stood at 19.5. Thus, the indicator highlighted downside tendencies for the alternative token.

Final Thought

Polkadot could have ‘shorting’ opportunities for intraday traders as evaluating the 12hr chart confirmed a bearish stance for the alternative token. The selling momentum behind Bitcoin over the last two weeks meant a potential downtrend for DOT.

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