Polkadot Price Prediction: DOT bulls prepare for 21% charge
- Polkadot price is currently grappling with a crucial resistance level at $17.66.
- A decisive 6-hour candlestick close above $17.66 will confirm the start of an uptrend.
- However, a breakdown of the $15.70 support floor will invalidate the bullish thesis.
Polkadot price experienced an extended and exponential uptrend from July 20. As the bullish momentum grew exhausted, DOT underwent a retracement which pushed it below a crucial support level.
Reclaim of the said barrier will indicate a resurgence of buyers and potentially trigger a new bull run.
Polkadot price anticipates a catalyst
Polkadot price rallied nearly 90% from July 20 to August 1, but the Momentum Reversal Indicator’s (MRI) sell signal in the form of a red ‘one’ six-hour candlestick combined with the exhaustion of the bullish momentum, created a perfect concoction that resulted in a 15% correction.
This downswing sliced through a vital support level at $17.66, flipping it into a resistance level. Therefore, a decisive close above $17.66 will indicate that the bulls are back in town, which could trigger a massive buying spree, pushing Polkadot price higher.
The $19.13 resistance level is the first barrier that the buyers will encounter. Breaching it will push DOT to $20.73, which constitutes roughly 21% higher from the current position.
DOT/USDT 6-hour chart
While the upswing narrative seems straightforward, investors need to note that the rally could begin after a retest of the $16.50 support barrier. Such a move does not negatively impact the optimistic scenario outlined above.
However, a retest leading to a breakdown of the $15.70 demand barrier will invalidate the bullish thesis. In some cases, this move might lead to a 10% downswing to $14.17.
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.
