$DOT : Assessing the chances of a 10% price bounce this week - AMB Crypto Analytics

Polkadot (DOT) bounced from the $4 support earlier this month, but momentum has stalled, and it now seems to be heading back toward that support. Liquidity charts suggest a quick move higher before a reversal, raising the question of whether traders should go long or wait for a bounce to short.

The volume profile shows resistance at $4.556, with DOT facing rejection and sinking toward $4.224 support. The Directional Movement Index indicates a strong downtrend, but the CMF, at +0.11, suggests capital inflows and some buying pressure.

A 1-month heatmap shows liquidity clusters at $4.6-$4.7 and $4. The stronger northern liquidity may push prices up before a potential reversal, forming a range between $4 and $4.7.