Polkadot Price Forecast: DOT needs to hold critical level to avoid slipping
- Polkadot price is trading right above an important support level on the 4-hour chart.
- The digital asset has been under consolidation for the past three days.
- There is not a lot of resistance on the way up for DOT bulls.
Polkadot established an all-time high at $46.8 on April 3 and has experienced a healthy correction since then, down to $40.66. The digital asset is trying to form a local bottom to see a new high in the short term.
Polkadot price must defend the 50 SMA support level
On the 4-hour chart, Polkadot has established a robust support level around $40.7, which also coincides with the 50 SMA. Losing this significant support point will quickly drive Polkadot price down to $39.4, which is the 61.8% Fibonacci level.
DOT/USD 4-hour chart
If this level is lost, DOT can fall as low as $37.13 at the 50% Fib level as the support below is relatively weak given the magnitude of the rally towards the all-time high.
On the flip side, defending the support level at $40.7 should push Polkadot price towards $42.7 at the 78.6% Fibonacci level. There is not a lot of resistance towards the all-time high at $46.8, which means bulls can drive DOT towards this level eventually.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
