Polkadot’s native cryptocurrency DOT registered a 5-day restoration after kicking off April on the again of a robust bearish pullback. Nonetheless, its worth motion, at press time, was approaching a beforehand examined resistance zone underpinned by a Fibonacci retracement.
DOT bears just lately went on a recess after bottoming out at $16.73 on 11 April, earlier than embarking on an general bullish efficiency. In actual fact, it’s up by roughly 10% since Monday, buying and selling at $18.37 on the time of writing.
Nonetheless, that restoration is perhaps reduce brief by sturdy resistance close to the $18.73-price stage.
Supply: TradingView
The 0.5 Fibonacci retracement line falls immediately on the upcoming $18.73-resistance stage. The likelihood of DOT encountering resistance at that stage will probably be nice because of earlier help and resistance retests during the last 3 months.
If expectations holds true, then there is perhaps one other potential pullback. Such an final result would additionally doubtless result in help close to the 0.618 Fibonacci stage, a stage which coincides with the $17.64-price stage. Evaluating its newest efficiency might also assist us decide the place the worth is heading.
What can on-chain metrics inform us?
DOT’s newest pullback didn’t have sufficient momentum to drag it to its sub-$16 lows. Its on-chain quantity appeared to spotlight a hike from 10 April, a day earlier than the cryptocurrency commenced its newest rally. It was adopted by an uptick within the provide held by whales from round 51.87% to 52.04%.
This coincided with the hike in quantity and shopping for strain, ensuing within the uptick over the previous couple of days.
Supply: Santiment
DOT’s on-chain quantity metric exhibits diminished quantity after the 11-12 April quantity enhance. Though it has tapered down, it’s nonetheless above the latest low and may help the retracement on the upcoming Fibonacci stage. A slight drop in share held by whales backs the expectation. In actual fact, it’s nonetheless notably increased than it was previous to final week’s worth uptick.
The availability held by whales and quantity metrics align with the likelihood of a pullback as a result of they point out diminished shopping for strain. Nonetheless, the truth that they haven’t dipped to their March lows means that the worth may not drop to these ranges within the short-term.
