Polkadot price gathers steam for 25% advance as DOT forms a bottom
- Polkadot price seems to be coming off its local bottom at $24.84 as recovery kick-starts.
- Investors can expect DOT to continue its ascent and rally 25% to retest $36.84.
- A breakdown of the $24.84 swing low will invalidate the bullish thesis.
Polkadot price has set up a swing high after the recent tumble and has recently confirmed the start of an uptrend. As the crypto markets begin to recover, DOT may reveal an optimistic outlook shortly.
Polkadot price prepares a higher high
Polkadot price set up a swing low at $24.84 after the recent flash crash on December 4. In less than three days, DOT set up a higher low, suggesting increased buying power. Moreover, the altcoin has also set up a higher high on December 7, indicating that an uptrend has begun.
Going forward, if this bullish momentum continues, investors can expect Polkadot price to rally 12% from its current position at $29.52 to $35.05. This move will face resistance at the top, but DOT could extend to the next level at $36.84 and collect the liquidity resting above it if bids continue to pile up.
In total, the run-up would constitute a 25% ascent and set the stage for an even advanced recovery where Polkadot price could aim at retesting its all-time high of $55.09.
DOT/USDT 4-hour chart
On the other hand, if Polkadot price fails to keep its uptrend intact, it will likely head lower and create a lower low below the recent swing point at $28.02. While this development is not conducive for an uptrend, investors should remain wary.
If the selling pressure increases, DOT could revisit the $24.84 support level. A breakdown of this barrier will create a lower low and invalidate the bullish thesis for Polkadot price.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
