- 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.
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
Toncoin eyes recovery following Bitfinex debut of tokenized Gold via TON
Toncoin extends recovery as bulls push to reclaim the 50-period EMA on the 4-hour time frame. Bitfinex announced on Tuesday the launch of tokenized Gold supported via The Open Network.
Crypto Today: Bitcoin holds below $109,000 as Ethereum, XRP offer recovery signals ahead of FOMC minutes
Bitcoin shows signs of weakness, capped below $109,000, as focus shifts to the FOMC minutes release. Ethereum's lukewarm rebound steps above $2,600, underpinned by steady spot ETF inflows.
Elon Musk's tweet on Epstein and GrokAI’s hallucination puts the spotlight on PNUT, MechaHitler
PNUT stalls Tuesday's recovery, sparked by Elon Musk’s tweet about the Jeffrey Epstein case. X’s GrokAI referenced MechaHitler, resulting in a new trend in the crypto market with the creation of over 250 MechaHitler tokens.
Bitcoin Price Forecast: BTC steady around $108,000 as investors await FOMC minutes for Fed rate clues
Bitcoin price holds steady at around $108,000 on Wednesday, maintaining support at a key technical level. Investors' attention shifts to the FOMC meeting minutes, as it offers insights into the Fed’s interest rate path prospects.
Bitcoin: BTC ends Q2 with 30% gains, Standard Chartered eyes $200K by year-end
Bitcoin (BTC) closed a strong second quarter (Q2), recording nearly 30% in quarterly gains amid rising corporate and institutional demand and bullish market sentiment.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.