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 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 may be lower quick by sturdy resistance close to the $18.73-price degree.
The 0.5 Fibonacci retracement line falls immediately on the upcoming $18.73-resistance degree. The likelihood of DOT encountering resistance at that degree will likely be nice because of earlier assist and resistance retests during the last 3 months.
If expectations holds true, then there may be one other potential pullback. Such an consequence would additionally seemingly result in assist close to the 0.618 Fibonacci degree, a degree which coincides with the $17.64-price degree. Evaluating its newest efficiency can also assist us decide the place the value is heading.
What can on-chain metrics inform us?
DOT’s newest pullback didn’t have sufficient momentum to tug it to its sub-$16 lows. Its on-chain quantity appeared to focus on 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 stress, ensuing within the uptick over the previous couple of days.
DOT’s on-chain quantity metric reveals lowered quantity after the 11-12 April quantity improve. Though it has tapered down, it’s nonetheless above the latest low and may assist the retracement on the upcoming Fibonacci degree. 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 lowered shopping for stress. Nonetheless, the truth that they haven’t dipped to their March lows means that the value may not drop to these ranges within the short-term.