Polkadot Price Prediction: DOT faces some headwinds, but more upside looks solid


  • DOT is still on a rampage higher, helped by a rediscovered interest in cryptocurrencies. 
  • DOT needs to break $27, which is a double resistance level. 
  • Further upside is possible as long as favorable tailwinds remain present.

Polkadot (DOT) has had an excellent run higher. A well-respected green ascending trend line has been formed and still shows importance and strength in the coming days. To the upside, however, price action is limited for now, with the 200-day Simple Moving Average (SMA) at $27 and the high of June 4 blocking the path. The risk of a double top formation could spell some short-term issues for price action. DOT could face a minor correction to the downside with a test of the green trend line as supportive action.

DOT is in a triangle formation, and a push to the upside looks inevitable

Do not expect the push to come just yet. A break higher out of the triangle looks instead set for the end of August. Buyers will need to step in each time and defend the ascending green trend line. This way, short-sellers will get squeezed out of their short positions with stops tucked away just above $27. Expect those stops to be run once the price breaks above and buyers to look for $29 as the next profit-taking level.


DOT/USD daily chart
DOT/USD daily chart

Polkadot is, therefore, set to run higher. The ultimate level to watch beyond $29 will be $31.76. Key will be that the green ascending trend line stays confirmed. If that should give way, expect a big squeeze against buyers, with prices dropping to $16.95. DOT has the orange horizontal support that originated on May 24. It is a significant level of interest since  around August 4, price action first  broke above, came back to test and rebounded off that level to jump higher. This is the best possible technical setup for a long. Should DOT correct, expect this level to be defended by buyers who have their stops just below $16.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Chainlink to present buy opportunity before LINK rises to $38

Chainlink price could create one of the most sought-after bullish entry setups in Point and Figure analysis: the Bullish Catapult. However, buyers must keep Chainlink above a certain price threshold, or the pattern will be invalidated.

More ChainLink news

SafeMoon bulls look for a breakout to $0.0000024

SafeMoon price is one of the best performers of the day, with moves as high as 13% above the open. While the breakout above $0.0000019 is bullish, momentum must be maintained to push SafeMoon above the Cloud to create clear bullish ...

More SafeMoon news

Top 3 Price Prediction: Investors prepare to sell on ETF news

Bitcoin price has historically sold off during the opening of any new derivative futures contract. Will this behavior continue? Ethereum price struggles to cross above the critical $4,000 level and may be held back pending any Bitcoin weakness.

More Bitcoin news

Cardano price to tread water soon, breaking below $2

Cardano price sees bears pushing price action further to the downside. ADA price has tested $2, but with lower highs, Cardano price is getting squeezed lower. The pivotal level at $1.89 could make or break the uptrend. Cardano price has been trying to recover ...

More Cardano news

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP