CryptoNicho

DOT ANALYSIS:02/01/21 - The Hangover Part 1...

Long
BINANCE:DOTUSDT   DOT / TetherUS
DOT ANALYSIS:02/01/21
The Hangover Part 1...

Technical' s
15M: Bullish
1HR: Bullish
4HR: Bullish
Daily: Bullish
Weekly: Bullish
Monthly: Neutral
Overall: Bullish

Volatility: Extremely high, 9.8% range already today.

Local Support: $7.75
Next Support: $7.10

Local Resistance: $9.5
Next Resistance: $10

Fundamentals:
- Binance replace ETH/BUSD pairing with DOT/BUSD pairing on Homepage - Bullish
- Binance pledges $10m to Polkadot projects - Bullish
- Lark Davis predicts $100 Dot in 2021 - Bullish


Personal Opinion:

The new year started with a corrective drop for DOT following its strong end to 2020. Having surged over 30% on the 31st a New Years Day hangover was inevitable and after a short lived play at $9.50, $8.23 looked about as bad as I felt.

But we had seen this coming. The RSI was showing us a heavily oversold and although selling pressure is cooling we’re likely to continue to see prices fall with a bearish future pivot at $7.65 (which matches up closely with the observed fibonacci retracement level of $7.76). If we fail to see a bounce here then its likely we’ll next find support at previous (sept 1) ATH $6.86.

If we do see a bounce then $11 could easily be on the cards as bulls buy on every dip.

Let us know what you think in the comments!
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.