While DOT’s potential may be great in the long term, the short-term outlook is nothing to be excited about.AMBCrypto observed this after examining DOT’s volatility. In crypto, volatility refers to the frequency of price fluctuations in the market.
A high volatility means the price of a token can swing to an extreme height or low within a short period. On the flip side, low volatility suggests that the price might keep trading within a tight region. For Polkadot, based on data from Santiment, the one-day volatility had dropped to its lowest since the 18th of May.Specifically, the reading was 0.0026. If the metric remains at a low spot going forward, it could be challenging for DOT to move past the $6 zone.When it increases, it implies that liquidity is flowing into contracts related to a cryptocurrency.
Liquidations occurs when a trader can no longer fulfill the margin requirements to keep a position open. When this happens, an exchange forcefully closes this position to prevent further losses., as price might move toward the high liquidity points. In Polkadot’s case, a cluster of liquidity appeared between $6.02 down to $5.77.
Therefore, the price of the token might move toward that area in the short term. However, in the case of invalidation, DOT’s next target could be between $6.60 and $6.95.Despite the bearish outlook of DOT, some analysts believe that the token’s potential remains bullish in the long term. One of those with such“DOT reaching the crucial area of support and the area for accumulation.
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Source: CryptoAmb - 🏆 22. / 68 Read more »
Source: CryptoAmb - 🏆 22. / 68 Read more »