Polkadot Price Forecast: DOT ready to pop to $20
- Polkadot price had a solid recovery after the sell-off in major cryptocurrencies.
- Although DOT broke a crucial bearish trend line, the upside looks very limited.
- Only a break of $17 can lead to an upswing to $20.
Polkadot price looks to be stuck in a sideways range where we do not see much real momentum for a move to the upside. But a squeeze seems finally ready to be set and push DOT above that $17 level we have been discussing since last week.
Polkadot price squeeze to the upside will happen
We have seen much potential these past few days in the recovery of all the significant cryptocurrencies. It was a very whipsaw reaction since this weekend. But now, it looks like the bar is set to the upside for Polkadot and others to go higher. The global risk-on sentiment in markets is still intact.
DOT will need that perfect surrounding to be able to jump above $17 as the level has already been tested seven times in the past three weeks. Today it looks set for another retest.
Once above, Polkadot price still sees minimal upside potential. With the 200-day Simple Moving Average (SMA) at $19.20, the upside looks relatively capped. Add to that the monthly pivot at $19.50, and buyers will have two reasons to sell. Short-sellers will be watching those levels to build up a short position.
DOT/USD daily chart
It looks like it is time for breaking higher above $16.94. For the moment, however, buying power is still there; as to the downside, we still see higher lows. DOT will squeeze against that $16.94 level in the coming hours or days.
Should the green ascending trend line break to the downside in the absence of buyers, expect a test of $10 as a psychological level. Just below, Polkadot price has its first monthly support coming in.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
