Polkadot Price at Crossroads: Will Fibonacci Support Revive DOT?
The post Polkadot Price at Crossroads: Will Fibonacci Support Revive DOT? appeared on BitcoinEthereumNews.com.
Polkadot’s price decline to $6.50 has traders interpreting the dip as a buying opportunity, eyeing a potential 50% rally. Despite bearish trends and a head-and-shoulders pattern, Polkadot’s $6 support level highlights buyer confidence and market resilience. Polkadot (DOT) has faced a turbulent December, reflecting both challenges and opportunities. After its impressive gain of 125.75% in November, DOT’s value has been under pressure, sinking to $7.16 earlier this week. This downward movement highlights profit-taking by investors but also reveals a critical support level that traders are closely watching. As of December 20, the Relative Strength Index (RSI) stands at 37.20, slightly above the oversold conditions. Additionally, the Stochastic Oscillator (STOCH) is at 34, reinforcing a balanced sentiment. These indicators align with analysts’ views that the cryptocurrency may be gearing up for a significant move. Source: TradingView Polkadot’s price entered the critical 0.5 and 0.618 Fibonacci range during its recent decline. Historically, this zone has acted as a pivot point, often leading to a resurgence in demand. On-chain data supports this, showing $1 million in spot outflow on Friday morning—marking 5 straight days of outflows from Dec. 16, according to Coinglass. Source: TradingView Traders Spot Dip, Eye 50% Rally Potential Traders have begun interpreting the latest dip as an accumulation opportunity, with the potential for a rally of up to 50% if demand picks up triggered by the Polkadot 2.0 upgrade set for Q1 2025, as CNF previously reported. Meanwhile, DOT’s funding rates have been climbing steadily for the past four days, reflecting an increase in long positions. Data from Coinglass reveals that 90% of all DOT/USD perpetual addresses on Binance are long, signaling renewed optimism. However, the broader longs vs. shorts ratio across multiple exchanges still leans slightly bearish. In the derivatives market, sentiment is shifting as DOT’s price consolidates near…
