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.

Share: Cryptos feed

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.

Join Telegram