The one and a half month marinating of the DOT price in a fairly wide consolidation corridor has come to an end. Buyers managed to break sellers’ limit defense. As a result of which the DOT price rose by more than 30% for the week. The main growth in the DOT market did not happen immediately after breaking the triangle trend line.
As you can see in the chart, after breaking the trend line, sellers tried hard to return the price to the consolidation range. However, buyers proved their serious intentions by absorbing the entire sellers’ offer and not allowing the DOT price to fall below the range $4.53-4.61. Sellers’ active actions looked more like an emotional family scandal, which is very intense, but short-term. Serious volumes for sale we saw only on one 4-hour candle, which buyers did not even allow to close.
The price movement in the DOT market followed the optimistic scenario we drew in the previous article.
Buyers managed to reach a critical point at $6. As we see in the chart, the approaching to this mark was accompanied by increased volumes. The price significantly slowed down near the critical point. So, it is worth considering the probable scenario of token correction and the prospect of continued growth from 17 November.
The future scenario of events in the DOT market
Looking at the DOT market more globally, it is clear that now the price is close to the previous liquidity zone, from where was a fall by 40%:
Analyzing consolidation in the period from 25 August to 3 September, we can see that the largest volumes concentration is around $ 6.23. With an optimistic scenario and continued DOT price growth, buyers will face aggression at this level and will be forced to pass the strength test again but at $6. This development suggests a test of $6.85. Now, the crypto and Defi markets contribute to this.
The main token growth occurred during the BTC consolidation period at local highs. At this time, BTC and USDT dominance was actively declining, so the capital was transferred to other coins. Today, BTC dominance and growth is increasing and other coins remain practically in place. With such a market strategy, while BTC is in a growth trend, DOT has every chance to test $6.85.
In addition, ETH 2.0 launch is likely to happen, as the required amount of ETH has been accumulated in the Eth 2.0 deposit contract:
This fact should play a positive role in the DeFi space as a whole.
This scenario will be canceled if sellers take control of $5.59. In this case, the initiative will pass from buyers’ hands and we should expect current growth correction.