Three months of expectations of DOT investors for a bright future and the continuation of the strong growth trend were not fully justified. Global consolidation, which began in February 2021, ended in a rapid fall wave. Within 10 days, the DOT market fell by 70% and confirmed our fears about the beginning of a correction. In the previous article, we wrote that we expect a fall to $29-30.
However, before the DOT price collapse, buyers decided to try to go against the general trend of the crypto market and updated the historical high. It happened on 15 May.
Historical high update without volumes are a bad luck
The main reason for the unsuccessful buyers’ attack is low trading volumes at historical highs. This fact can only be regarded as the weakness of buyers. However, sellers inflicted the main blow on 19 May. On this day, after the attack of the white trend line, a large number of buyers’ stop orders who bought DOT from 24 to May 18 April were triggered:
As we see on the chart, after breaking the trend line, the price approached the next liquidity zone. There were already stop orders of buyers who were gaining a position on DOT since February 2021. Thus, we saw a fairly fast fall wave, which stopped in the liquidity price zone of $15-16. If we look closely at the daily timeframe, we see that there were such anomalous volumes on the DOTUSDT chart twice.
The range of $15-16 is the most liquid price zone in the DOT market
Interestingly, both of these cases are associated with the range of $15-16. Only at first, buyers could not break this range up without problems. Now this range has acted as a lifeline for the uptrend and withstood a powerful blow.
If we pay attention to the DOTBTC price movement, we can see that the global consolidation has not ended:
Buyers are constantly trying to continue the upward trend and update the historical high. However, there is not enough support to make the trend look harmonious. Thus, the DOTBTC price constantly is around the important range of 0.0005-0.00054. First, in August 2020, this range became an all-time high and a serious obstacle for buyers. Beginning in January 2021, buyers have already fought several times to control this liquidity zone and have been successful so far.
Given the facts above, we expect the DOT market to recover by at least 50% in the near future. We will expect a test of the range $29-30 from which a new fall wave may begin.
