Polkadot (DOT) - 4h. Fall wave correction is not over yet

9 Jun 2021

The drop in the[b] Polkadot (DOT) market by 72% in one week significantly reduced investor interest. An attempt to form a new wave of growth, which buyers began on May 23, is more like a wave of correction. If at the beginning of the growth wave formation the trading volumes were increased, now we see that the buyers' fire is extinguishing before our very eyes.

The first local problem of buyers, which they cannot cope with, is at the mark of $24.5. On the chart, we see that buyers twice tried to take control of this mark. However, given the fact that buyers were able to hold the range of $19-20, we will soon see a third attempt to break the mark of $24.5.

At the moment, the range of $19-20 is a critical point for buyers, the control of which ensures the continuation of the local growth scenario in the DOTUSDT market. The loss of this range will pave the way for sellers to $14. And this scenario will continue to fall and update the previous low.

Our main target is to test the range of $30-31. If you look at the daily timeframe, you can see that in this range when there was the lower limit of the global consolidation:

The chart shows that buyers are preparing to test this range. We doubt whether buyers will have enough strength to continue growth without correction. Considering the powerful impetus for the DOT price fall, the best scenario is the continuation of the price movement in a broad consolidation of $19-30. The scenario becomes especially convincing when we look at the weekly timeframe:

However, we will describe the global situation on the DOTUSD market after testing the price of the range of $30-31.

P.S. The previous idea worked well: