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

Polkadot price might be open for a quick run-up as it approaches the $10.37 to $15.66 demand zone.
A bounce off this barrier could trigger a 25% ascent to $19.75 and might extend to $20.
If DOT produces a daily candlestick close below $10.37, it will invalidate the bullish thesis.

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.

Share: Cryptos feed

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.

Join Telegram