So the third, the most important buyers’ attempt to continue the DOTUSDT price upward trend with a target of $50 is coming to a culmination. Consolidation in the DOT market is clearly delayed and investors’ emotions are on the verge. For the third month, the DOT price moves within the range of $28-44. However, the main liquidity zones, where market participants face problems, price slowdown and the beginning of a local trend reversal, are in the ranges of $29.5-30.5 and $40.5-42.
At the moment, buyers are trying to break the upper border of consolidation and are clearly determined. If we look at the daily timeframe, we can see that trading volumes increased significantly during the attempt to reverse the consolidation upward:
Great Effort of DOT Buyers May End with an Unpleasant Surprise
In addition, yesterday’s daily candle closed very cheerfully and gave some hint that buyers have serious intentions. Though, as we remember, there was a similar situation in the BTC market that buyers didn’t take advantage of.
An interesting fact is that sellers’ activity this time, during the attemt to break $40.5-42, significantly increased. Pay attention to the daily chart, how easily buyers managed to pass this range and keep it from 2-17 April. And also what resources are needed now to simply test it.
Of course, the positive is added by the fact that after yesterday’s BTC price fall, the DOT price rebounded strongly. However, in our opinion, this happened due to the hedging of Bitcoin investors into the Polkadot project.
This fact can be confirmed by the DOTBTC chart:
The DOTBTC price has been successfully growing since 11 May, while the BTC price has been falling successfully. Despite the great buyers’ efforts to continue the growth trend in the DOT market, we have great doubts about this. First of all, on smaller timeframes, we clearly see how sellers effectively manage to slowdown growth in a liquidity range:
Sellers Want to Keep The Range Of $40.5-42 And Start A Fall Wave
The 6-hour timeframe shows the DOT price moves along dynamic channels. In the range of $40.5-42, many important trend lines converge, which emphasize the importance of breaking it for growth to $50.
Therefore, while the DOT price is below this range, our main scenario is a market reversal with the target – $29.5-30.5. Considering that the BTC price can continue a powerful fall wave, even without rising above $52,000, a fall in the DOT market is quite likely for us.