Polkadot stuck in $6 range: Rough days ahead for DOT?
What has been the trading range of Polkadot [DOT] since the 14th of June?
Since the 14th of June, Polkadot [DOT] has been trading between $6.10 and $6.25. The sideways movement and low volatility suggest that it might be challenging for DOT to move past the $6 zone in the short term. Additionally, the liquidation heatmap indicates that the price of the token might move toward the $5.90 area in the short term. However, some analysts believe in the bullish potential of DOT in the long term, considering the project's fundamentals and the upcoming RWA narrative.
How has DOT's one-day volatility changed since the 18th of May, and what does this suggest about its future price movement?
DOT's one-day volatility has dropped to its lowest level since the 18th of May, with a reading of 0.0026. This low volatility suggests that the price of Polkadot might continue to trade within a tight range, making it challenging for DOT to move past the $6 zone. This, combined with a decline in Open Interest, indicates that DOT may not have the strength to break through $7 in the short term. Additionally, a liquidation heatmap suggests that the price of the token might move toward the $5.90 area in the short term.
How does the decrease in Open Interest impact the potential for DOT's price to break through the $7 mark?
The decrease in Open Interest (OI) for Polkadot (DOT) suggests that the net positioning is decreasing and money is flowing out of the market. This decline in OI can be seen as a sign that DOT might not have the strength to break through the $7 mark in the short term. With reduced liquidity and market interest, it becomes more challenging for the token's price to experience significant upward movement. Therefore, the decrease in Open Interest has a negative impact on the potential for DOT's price to break through the $7 resistance level.