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Technical Analysis for DOTUSD for 6th October 2021

Polkadot Wavy and Down 3%, Parachain Slot Auction Highly Anticipated

With Kusama taking the lead, the wider Polkadot community is looking forward to the Parachain slot auction—the accelerant for DOT to reclaim all-time highs.

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.

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