Polkadot price eyes 25% rally, while DOT remains subdued by 50-day SMA

Polkadot price has been in a steady downtrend since November 2021 and shown no signs of a turnaround. Now, however, there are glimmers of hope for investors as DOT meanders close to a stable support level.

Polkadot price attempts to restart upswing

Polkadot price has crashed 74% from its all-time high and is currently hovering above a three-day demand zone, extending from $10.37 to $15.66. The recent downswing seems to be due to the presence of the 50-day Simple Moving Average (SMA).

Since December 27, 2021, every minor uptrend of Polkadot price faced rejection at the hands of the 50-day SMA. The most recent rally reversed after nearing the same hurdle on March 1. The resulting retracement will likely push DOT to retest the said demand zone.

A bounce off this barrier will be vital in triggering an uptrend for Polkadot price. Interested investors can open a long position at $15.66 and look to cover at around the 50-day SMA again, at $19.75. Market participants should note that, in some cases, DOT might extend this leg to retest $20.

In a highly bullish case, DOT might even make a run at the $22.23 resistance barrier, bringing the total upswing from 25% to 41%.

DOT/USDT 1-day chart

While things are looking up for the Polkadot price, a daily candlestick close below the $10.37 will breach the three-day demand zone and create a lower low. Such a move will invalidate the bullish thesis and open the path for bears to reign supreme.

In such a situation, Polkadot price might slide lower and retest the $10.09 support level or $8.31 barrier, from where buyers can attempt a fresh recovery.