Technical analysis of DOT showed that despite the volatility witnessed in the past two days, the bulls were still in control. A critical level of resistance continued to stand strong, but the sellers were weakening.
The pullback came as low as $5 before another bounce
Source: DOT/USDT on TradingView
The daily market structure remained firmly bullish. The RSI was at 67 to reinforce the idea that bulls were in control. The On-Balance Volume shot above February highs to underline the intense buying pressure in recent weeks.
The Chaikin Money Flow (CMF) also signaled enormous capital inflow to the DOT markets.
The $5.3-$5.56 region was a bearish order block on the one-day chart since late May. DOT managed to close a daily trading session above it on 12th November, breaking it as a resistance zone. The subsequent pullback reached $5 but saw a sharp bounce very quickly.
The Fibonacci retracement levels at $4.73 or lower were not tested. This was another sign that buyers were dominant and that market conditions favored shallow pullbacks at the moment. To the north, the $6.2 and $7.05 levels would likely be tested next.
Are we on course to get another sweep of the $5 region?