- DOT was trading at a key demand zone.
- The Open Interest chart showed strong bearish sentiment in the past few days.
Polkadot [DOT] experienced a 20.5% fall in prices in the last eight days. On the 11th of January, DOT rose to $8.58 but fell to $6.82 on the 19th. Despite this, buyers could still drive a recovery.
Technical analysis showed that the market structure of DOT on the one-day chart was bullish. Moreover, prices have receded to a demand zone. This presented traders with an opportunity to go long.
The bullish order block was not invalidated yet
AMBCrypto’s analysis of the one-day price action showed a bullish market structure break on the 11th. Even though this move was almost entirely retraced, a key support zone remained valid.
Demarcated by the cyan box, the bullish order block extended from $6.82 to $7.32. These levels were the extremes of the 7th of January’s trading. At press time, DOT was at $6.895.
