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Can FOMO help DOT’s price action after its failed breakout attempt?
The Polkadot (DOT) cryptocurrency has been in a bearish trend since December, with the recent failure to break out from its wedge pattern casting doubts on any potential bullish rally. The market excitement that fueled other altcoins is yet to trickle down to DOT, which has seen a pullback of roughly 12% over the last two days.
The DOT community had been eagerly anticipating a breakout from the wedge pattern, but it appears this enthusiasm was premature. Despite the price action failing to sustain itself above the resistance line, there may be an opportunity for Fear Of Missing Out (FOMO) to propel prices back up. The recent surge in address activity and open interest suggests that some traders are still waiting for a bounceback from the support range.
In fact, data from Coinglass shows a significant increase in spot flows over the last two days, indicating that DOT traders are focusing on short-term profit taking rather than long-term investment. Although this sentiment may not bode well for a sustainable recovery, it is possible that FOMO could drive prices back up in the short term.
DOT has been able to hold support at the $6 level and may be seen as undervalued by some investors. If we are to witness any significant price movement from here on out, it will likely need to come from an influx of buying pressure driven by fear of missing out rather than a sustained fundamental shift in the cryptocurrency’s value proposition.
In the meantime, DOT’s failed breakout attempt has presented an attractive opportunity for traders looking to get in at a discount. With address activity and open interest both experiencing significant growth over the last few days, it is possible that we could see FOMO play a role in the price action going forward.
Source: ambcrypto.com
