• Polkadot price is approaching a critical level after surging 30% from its recent swing low.
  • The MRI shows a preemptive top signal, indicating a reversal might be arriving shortly.
  • The resistance level at $38.70 and the supply zone ranging from $42 to $44.06 will be crucial in establishing a trend for DOT.

Polkadot price was on a constant upswing since the crash a few weeks ago. However, DOT is currently sitting below stiff resistance levels that could invoke a downswing.

Polkadot price slows down

Polkadot price has recouped nearly 50% of its losses after the market crash between April 17 and April 23. While an upswing seems likely, investors should note that the resistance level at $38.70 will hinder any bullish momentum.

If this barrier is cleared, the supply zone, extending from $42 to $44.06, will be the next point of contention. The Momentum Reversal Indicator’s preemptive top signal in the form of a yellow arrow on the current 12-hour candlestick adds to this bearish picture.

Additionally, the 50 and 100 twelve-hour Simple Moving Averages (SMA) at $37.05 will play a pivotal role. A decisive close below the SMAs or rejection at any of these levels will lead to a correction toward the demand barrier that stretches from $32.56 to $34.25.

While this scenario is not bullish per se, it will allow the buyers to recuperate for the next leg. However, a breakdown of the 200 SMA at $32.58 will invoke a massive bearish outlook that could push Polkadot price to $27.95.

DOT/USDT 12-hour chart

DOT/USDT 12-hour chart

While the upswing does not seem likely from a technical standpoint, investors should note that a potential spike in buying pressure that results in a decisive 12-hour candlestick close above the supply zone’s upper trend line at $44.06 will kick-start an uptrend.

Under these circumstances, Polkadot price could surge another 10% to retest its all-time high at $48.36.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility. Investors can take their eyes off CRO as long as this trend continues.

More Crypto.com news

Ethereum Classic price could bounce 10% if the conditions are perfect

Ethereum Classic price could bounce 10% if the conditions are perfect

Ethereum Classic price has started to turn around after weeks of downtrend and sell-off, but there is still more room to cover. Therefore, investors need to be careful as this ongoing spurt in bullish momentum could take a U-turn quickly. 

More Ethereum Classic news

Chainlink Price Prediction: LINK hints at a sweep-the-lows event targeting $5.70

Chainlink Price Prediction: LINK hints at a sweep-the-lows event targeting $5.70

Chainlink price has been producing higher lows since June. The Volume Profile Indicator shows bears have regained control of the higher time frames. Invalidation of the bearish thesis is a breach above $10, which could trigger an additional rally towards $12.

More ChainLink news

Bitcoin headed into recovery, rising above $20,000 as Whales begin reaccumulation

Bitcoin headed into recovery, rising above $20,000 as Whales begin reaccumulation

The crypto market has been in a suspended state for the last couple of months, and that effect does not seem to have gone away. Micro fluctuations do take place every now and then. However, on the macro time frame, crypto assets need a major boost.

More Bitcoin news

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP