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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- DOT broke a critical short-term support at $4.32.
- Sales were stagnant, indicating a likely margin on the weekend.
According to TradingView Dot [DOT] closed August in the red, losing more than 16% on monthly performance. While July posted mixed results, with an overall loss of 1%, the third quarter doesn’t look impressive for DOT bulls.
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On the other hand, Bitcoin [BTC] retested the $28,000 level on August 29, but reversed the gains and struggled to hold the $26,000 mark at the time of writing. The losses allowed sellers to exert more leverage over the weekend (September 2-3).
DOT breaks the near-term USD 4.32 support
Source: DOT/USDT on TradingView
The mid-August price dump was temporarily halted at a short-term support of USD 4.32. The support has been stable since June and joined the weekly bullish order block (OB) from $4.22 – $4.59 (cyan).
For perspective, the weekly bullish OB prevented the June price dump, and a similar trend could strengthen the bulls. Thus, sellers can look for a break below the cyan area before extending gains to the USD 4.0 support.
On the downside, BTC’s reversal to $26,000 bottomed out, and a narrow price range over the weekend could be likely. If so, DOT might consolidate losses below USD 4.32 over the weekend.
On the upside, the dynamic resistance level, 50-EMA (Exponential Moving Average) and the H4 bullish OB near $4.6 could be key targets if the bulls regain control of the market in the near term.
The RSI retreated into the oversold zone, while the CMF headed south below zero, reinforcing the extreme bearish bias in the near-term spot market.
Sellers checked relaxed
Source: Coinalyse
The CVD (Cumulative Volume Delta) fell from Aug. 30, but moved sideways at press time. It shows that sellers had absolute control over the market, but buyers counteracted the influence afterwards.
How many Worth 1,10,100 DOT today?
The flat move calls for caution, indicating a lack of leverage for buyers and sellers.
Open interest rates have surged as of August 31 and can be seen from sellers’ open contracts to cover short positions. However, it was wavering at the time of writing, cementing the weekend’s neutral stance.