Polkadot price needs to juice up before rallying 40%
|- Polkadot price shows signs of bouncing but could revisit the $5.94 to $6.51 demand zone.
- A dip into the aforementioned demand zone is likely to trigger a sweep above $7.77 and $9.65.
- A daily candlestick close below $5.94 will invalidate the bullish thesis for DOT.
Polkadot price is currently hovering around a crucial level that could result in an uptick in buying pressure and a rally. However, sellers could trigger another liquidity hunt before attempting a run-up.
Polkadot price to dig a little lower
Polkadot price showed bullish momentum as it bounced off the $5.94 to $6.51 demand zone on July 26. The ricochet pushed DOT up by 48%, producing a swing high at $9.65. Since then, it has been a bear infestation with no signs of stopping until August 27.
As Polkadot price trades around $6.85, investors can expect two things to happen:
- Bounce off the range low and trigger a 14% rally to sweep the equal highs at $7.77.
- However, if it digs into the demand zone, DOT could trigger a 40% move to sweep the liquidity resting above equal highs present at $9.65.
A premature bounce could have the momentum, but a dip into the aforementioned demand zone would provide more oomph to move the extra mile. Therefore, investors should assess the sweep of the range low at $6.85 before Polkadot price triggers a run-up.
DOT/USDT 1-day chart
On the other hand, if the buyers fail to step up, causing Polkadot price to produce a daily candlestick close below $5.94, it will create a lower low and invalidate the bullish thesis for DOT.
In such a case, Polkadot price might revisit $5.5 and the $5 psychological levels in search of key support.
Note:
This Bitcoin analysis explains how altcoins could react and if Polkadot price is ready for explode
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