Technical Analysis for DOTUSD for 6th October 2021
Polkadot Wavy and Down 3%, Parachain Slot Auction Highly Anticipated
Past Performance of DOT
The Polkadot project offers interoperability and high throughput, features that were a mirage for developers a few months back.
DOT is down 36 percent from all-time highs and wavy at the time of writing.
Despite the contraction of prices, DOT crypto bulls expect a recovery and snapping back of price action to mirror performance in July through August.
What to Expect of DOT
At spot rates, without factoring in the Parachain slot auction, DOT is undervalued.
Accordingly, positional value traders might be positioning themselves for the event, ramping up on dips.
In the days ahead, how prices react at $28 and $25 to the downside would determine the short-term trend.
On the flip side, an upswing, confirming last week's gains, might trigger more demand, lifting DOT back to $40 and $45—all-time highs.
Polkadot Technical Analysis
Day traders may find entries, dumping on pullbacks riding the back of sellers of the last few days.
Meanwhile, bulls are confident-- possibly loading the dips provided prices are within the October 1 bull bar.
From an Effort-versus-Results analysis, DOT bulls have the upper hand since recent bars have relatively low trading volumes.
Even so, deeper losses below $28 with expanding volumes might pave the way for sellers targeting $25.
Resistance level to watch out: $33
Support level to watch out: $28
Disclaimer: Opinions expressed are not investment advice. Do your research.