Polkadot $DOT Long Liquidation at $6.987 – What’s Next?
Polkadot dot has seen a long liquidation worth $1.4274K at the price level of $6.987.
This signals a significant market movement, potentially opening new opportunities for traders and investors.
Let’s break it down step by step to help you plan your next move with clarity.
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What Does This Mean?
Long Liquidation: This occurs when traders betting on the price going up are forced to exit their positions due to falling prices.
Price Action Insight: A liquidation at $6.987 suggests that dot might face resistance near this level in the short term.
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What’s Next for $DOT?
Market Trend: Analyze the current trend. If selling pressure continues, $DOT might drop further.
However, if buying support increases, a rebound could occur.
Volume Check: Monitor trading volume.
High volume during a downtrend may indicate stronger selling pressure, while low volume may suggest a consolidation phase.
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Trading Strategy
1. Buy Zone:
Look for entry points between $6.50 - $6.70.
This range is a potential support area where buyers might step in.
2. Target Levels:
Short-term target: $7.20
Medium-term target: $7.50
3. Stop Loss:
To protect your capital, set a stop loss at $6.30.
This ensures minimal loss if the market continues to decline.
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Important Tips
Risk Management: Never invest more than you can afford to lose.
Use a position size calculator to balance your risk.
Stay Updated: Keep track of market news, especially Polkadot-related developments, as they can influence price movements.
Watch Resistance Levels: If dot breaks above $6.987 with strong volume, the next resistance zone could be around $7.20 - $7.50.
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Final Thoughts
The $DOT liquidation at $6.987 reflects market volatility, but it also presents an opportunity for strategic trading.