Polkadot

Delta

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<p><i>Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.</i></p> 
<ul> 
 <li><em>Market structure remained bullish due to the overwhelming strength of buyers in the last five days</em></li> 
 <li><em>A retest of the $6.3-level will be likely should DOT close a session below $6.8</em></li> 
</ul> 
<p><a href="https://ambcrypto.com/search/dot" target="_blank" rel="noopener" data-wpel-link="internal">Polkadot [DOT]</a> has leaned <a href="https://eng.ambcrypto.com/polkadot-traders-get-cynical-despite-dots-surge/" target="_blank" rel="noopener" data-wpel-link="internal">strongly north</a> in December so far. Despite the pullback from $7.68 over the weekend, the altcoin retained its bullish market structure. <a href="https://ambcrypto.com/search/bitcoin" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin’s [BTC]</a> latest dip saw DOT recede considerably too.</p> 
<p>It is possible that a short-term resistance level just above $7 could rebuff bulls should DOT bounce in the coming hours or days. What should traders watch out for next?</p> 
<h3 id="short-term-move-subsequent-retracement-offered-some-clarity-on-the-way-forward">Short-term move, subsequent retracement offered some clarity on the way forward</h3> 
<div id="attachment_358193" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358193" decoding="async" class="wp-image-358193 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4.png" alt="Polkadot" width="1940" height="1099" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4.png 1940w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4-300x170.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4-1024x580.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4-768x435.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-price-H4-1536x870.png 1536w" sizes="(max-width: 1940px) 100vw, 1940px"></a>
 <p id="caption-attachment-358193" class="wp-caption-text">Source: DOT/USD, TradingView</p>
</div> 
<p>From 7 December to 9 December, DOT saw a swift move north from $5.9 to $7.69. Soon after, the bulls were beaten back and prices momentarily dipped to $6.285 a few hours before press time.</p> 
<p>The explosive rally past $7 was used to plot a set of Fibonacci retracement levels (cyan). The 78.6% retracement level was at $6.284, where Polkadot prices withdrew. Therefore, two scenarios are possible. The bullish one is where DOT surges higher without dropping below $6.8.</p> 
<p>The slightly bearish scenario, at least in the short term, would be a slow drop towards $6.285 once more. Following such a dip, the uptrend could resume. In either case, to the north, the next bullish target is at $7.9 – A higher timeframe resistance level. The $8.21 and $8.8-levels could obstruct the buyers as well.</p> 
<h3 id="liquidation-data-showed-a-bounce-past-7-is-likely">Liquidation data showed a bounce past $7 is likely</h3> 
<div id="attachment_358192" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358192" decoding="async" class="wp-image-358192 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock.png" alt="Polkadot" width="1866" height="1027" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock.png 1866w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock-300x165.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock-1024x564.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock-768x423.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-1-DOT-hyblock-1536x845.png 1536w" sizes="(max-width: 1866px) 100vw, 1866px"></a>
 <p id="caption-attachment-358192" class="wp-caption-text">Source: <a href="https://hyblockcapital.com/liquidationlevel" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">Hyblock</a></p>
</div> 
<p>AMBCrypto analyzed the liquidation level data from Hyblock. The last couple of days saw the Cumulative Liq Levels Delta drop steadily. The latest fall to $6.3 saw it go red, suggesting that a move upward could contribute to pain in the Futures market.</p>  
<p style="text-align: center;">Read <a href="https://ambcrypto.com/predictions/polkadot-price-prediction" target="_blank" rel="noopener" data-wpel-link="internal">Polkadot’s [DOT] Price Prediction</a> 2023-24</p>  
<p>Low leverage short positions were opened on 11 December with $7.12 as the estimated liquidation level. Combined with the negative Delta, a bounce in prices to collect liquidity before a reversal is possible.</p>

Polkadot’s price falls past $7 – How does this affect DOT’s prediction?

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