Polkadot Price Prediction: DOT could continue the uptrend, rise 30% if these conditions are met
- Polkadot price has some upside potential, but only if certain conditions, concerning price and momentum, are met.
- Meanwhile, it is worth mentioning that it has among the biggest and most fully decentralized treasury in the entire industry.
- DOT could continue its previous uptrend if momentum rises enough to restore the price back above the ascending trendline.
- Invalidation will occur if the price breaks and closes below the $6.5000 range low, recording a lower low
Polkadot (DOT) price was among the most affected during the January 2 crash instigated by the Matrixport report. With the market recording the largest altcoin liquidations in two years, the DOT price fell an outstanding 20% in hours.
Also Read Polkadot Price Prediction: DOT likely to crash 10% with history likely on repeat mode
Polkadot price could fall despite a voluminous treasury
Polkadot (DOT) treasury stands among the largest and most decentralized, with the latest data showing more than 44 million DOT available for distribution towards ecosystem growth.
Polkadot treasury
Nevertheless, even with such a voluminous bucket, Polkadot price may be due for a fall, unless the bulls play their hand well.
Polkadot price could rise if these happen
Polkadot price is trading below the ascending line, with the potential to extend the fall. This is because the Relative Strength Index (RSI), which quantifies buying momentum, is dropping to show dwindling buying pressure. Also, the Average Direction Index (ADX) indicator, which quantifies trend strength, is rising, to show the slump is becoming stronger.
Increased selling pressure could see Polkadot price extend the fall, slipping past the $7.000 psychological level or in the dire case, extrapolate the fall to tag the $6.500 range low, levels last tested on January 2. A break and close below this level would confirm the continuation of the downtrend.
Further supporting the downtrend thesis is the position of the Awesome Oscillator (AO) indicator in the negative territory, with red-hot histogram bars, suggesting the bears have a strong presence in the DOT market.
DOT/USDT 4-hour chart
However, if bullish momentum increases, enough to set the RSI above the descending trendline, and subsequently restore the Polkadot price above the ascending trendline, it would rekindle the possibility of a continuation north.
Key levels to watch in the event of an uptrend would be the $8.124, and $8.807 levels. These are areas where the altcoin faced a rejection previously. Overcoming them would therefore set the pace for a continuation of the uptrend.
In a highly bullish case, the uptrend could see DOT market value reclaim the range high at $9.593 by clearing the $9.419 barrier. Such a move would constitute a 30% climb above current levels.
(This story was corrected on January 8 at 07:40 GMT to say that Polkadot could fall to $6.5, not $0.65.)
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
