- Polkadot price has defended a crucial support level at $15.5 and aims for a strong rebound.
- The negative sentiment on social media is a bullish indicator.
- The digital asset faces a strong resistance barrier of around $18.
Polkadot has been trading inside an ascending parallel channel on the 4-hour chart since January 16. The digital asset has just rebounded from a crucial support level at $15.5 and could be aiming for a long-term price target of $19.
Polkadot price bounces towards $19 as on-chain metric turns bullish
DOT bulls have just defended the channel's lower trendline support on the 4-hour chart, at $15.5. Polkadot price is up by 14% since touching $15.25 and faces very little resistance to the upside until $18.
DOT/USD 4-hour chart
The Weighted Social Sentiment chart is currently negative for the past four days, which can usually translate into good buying opportunities. Similarly, when it’s positive and really high, Polkadot experiences pullbacks.
Polkadot Weighted Social Sentiment Twitter chart
Additionally, the overall social volume that Polkadot has received in the past week has declined significantly. This is another indication of a potential rebound as the low social volume can often lead to significant pumps.
Polkadot Social Volume
Nonetheless, the digital asset has some trouble climbing above the middle trendline of the parallel channel at $17.5. Rejection from this level can push Polkadot price down to the lower trendline at $15.5 again.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.