- Polkadot price faces an uphill battle between the high-time-frame resistance at $10.37 and other hurdles in its path.
- A decisive four-hour candlestick close above $11 will improve its probability of an upswing to $13.65.
- A four-hour candlestick close below $9.20 will create a lower low and invalidate the bullish thesis for DOT.
Polkadot price wants to embark on an uptrend but the number of hurdles laid in its path suggests this outlook is unlikely. However, a recovery above a certain barrier will make this bullish narrative more plausible.
Polkadot price has an adversarial path
Polkadot price has been consolidating since May 13 and has constantly produced lower highs and lower lows. On June 2, DOT bulls seem to have stepped in, creating a higher low and tighter consolidation. As a result, the June 6 price action has resulted in a 4% upswing.
If Polkadot price continues in this direction, it will face the declining trend line connecting the lower highs formed since May 13 and also the 100 four-hour Simple Moving Average (SMA) at $9.76.
Adding headwinds to this run-up for DOT is the $10.37 high-time-frame resistance level. Therefore, this cluster of hurdles, extending from $9.76 to $10.37 needs to be overcome for a chance at an upswing. Beyond these blockades, there is also the 200 four-hour SMA at $10.75, which will test the bulls’ strength again.
If Polkadot price manages to produce a four-hour candlestick close above this level and uses it as a support level, the chances of an upswing will multiply. In such a case, investors can expect DOT to attempt a 26% rally to another high-time-frame resistance barrier at $13.65.
DOT/USDT 4-hour chart
While things are looking particularly tough for Polkadot price and the bulls, rejection at any of these levels could hinder the optimistic narrative. If DOT produces a four-hour candlestick below $9.20, it will create a lower low and invalidate the bullish thesis for DOT.
In such a case, Polkadot price could spend time at an intermediate support level at $8.51 and eventually crash to $7.10 if the selling pressure continues to build up.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies
Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.
Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally
Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.
Dogecoin price action hints DOGE can reverse its bearish trend
Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.
PEPE price to drop another 15% as altcoin winter is only halfway finished
PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.