Polkadot price slides towards demand zone for chance of a reversal
|- Polkadot price could soon retest the $5.94 to $6.51 demand zone before a quick run-up.
- Investors can expect DOT to rally 20% in an upswing to $7.77, possibly even to $9.65.
- A daily candlestick close below $5.94 will invalidate the bullish thesis for DOT.
Polkadot price is approaching an inflection point that could potentially reverse the downtrend and allow bulls to take control. This development comes as BTC is also attempting to find a stable support level to kick-start its recovery rally, making a bullish outlook more likely for DOT too.
Polkadot price searches for stable footing
Polkadot price has crashed roughly 29% since August 10, allowing it to retest the range low at $6.85. So far, this level seems to be holding up pretty well, and if buyers step in, a reversal might occur from the current position at $6.94.
However, the ideal scenario would be for Polkadot price to fall a little more, tagging the $5.94 to $6.51 demand zone. Due to the imbalance here, it’s a good place for investors to expect a bullish momentum spike that pushes DOT to kick-start an uptrend.
The equal highs formed at $7.77 would be the first target for Polkadot bulls, but penetration and subsequent flipping of the level into a support floor will allow buyers to extend the run-up to the next equal high formed at $9.65. This move could constitute a 48% gain when measured from $6.51 and is likely where the local top will form.
DOT/USDT 1-day chart
On the other hand, if the buyers fail to make a comeback when Polkadot price dips into the $5.94 to $6.51 demand zone, it will indicate a dearth of bullish momentum. This unfortunate development could cause DOT to produce a daily candlestick close below $5.94, which would invalidate the bullish thesis by creating a lower low.
In such a case, Polkadot price might revisit $5.50 and the $5 psychological levels in search of key support.
Note:
A reversal in Bitcoin price could see altcoins do the same, and the video attached below details a potential short-term recovery rally for BTC.
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