|

Polkadot Price Prediction: DOT stabilizes for a 20% rally

  • Polkadot price has tagged the $24.84 support floor twice, suggesting that the bulls are building up momentum.
  • Investors can expect DOT to see a quick 20% run-up to $30.89 from its current position.
  • If the altcoin sets up a swing low below $24.35, the bullish thesis will face invalidation. 

Polkadot price has been consolidating since the December 4 crash and shows signs that it is ready to make a move. Due to its presence near a crucial support level, DOT is likely to bounce off this barrier and trigger an upswing.

Polkadot price gets ready to move higher

Polkadot price set up a swing low at $24.35 due to the December 4 crash. Since this point, DOT has erected variable swing highs, but the swing lows have been in the proximity of $24.84. Over the last eight days, DOT has tagged this barrier roughly twice, suggesting a double bottom formation and an indication to move higher.

Therefore, investors can expect Polkadot price to move higher. However, in a special case, there is a chance DOT might retest the $24.84 support level for the third time. This move would lead to a triple bottom setup, indicating an upswing is even more likely.

The $29.54 hurdle is the first barrier Polkadot price will encounter on its way up and is roughly 14% away from its current position - $26.01. Beyond this, DOT will revisit the $30.92 resistance level, indicating a 20% upswing.

In a highly bullish case where the buying pressure increases, Polkadot’s price could extend to $35.04, representing a 34% ascent.

DOT/USDT 4-hour chart

DOT/USDT 4-hour chart

While things are looking up for Polkadot price around the $24.84 support level, a breakdown will alarm the traders. However, if DOT produces a swing low below $24.35, it will create a lower low, invalidating the bullish thesis. In this scenario, Polkadot price might revisit the immediate support level at $22.66.

Author

Akash Girimath

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.

More from Akash Girimath
Share:

Editor's Picks

Ripple eyes $1.50 breakout despite softening on-chain activity

XRP remains elevated near $1.45 after a sharp spike from the weekly low of $1.31. XRP retains a neutral-to-bullish technical outlook, supported by the RSI and uptrending moving averages.

Zcash Price Forecast: Rally hits nine-year high above $1,000 amid growing shielded demand

Zcash trades above $1,000 on Friday, building on its 16% gain from the previous day. On-chain data show a steady increase in shielded supply to 4.86 million ZEC tokens, pointing to growing demand for privacy.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast.

Crypto Today: Bitcoin, Ethereum, XRP recovery takes a breather amid capital inflows

Bitcoin corrects lower toward $80,000 after testing highs at $81,269, supported by $731 million in ETF inflows. Ethereum bulls push to regain momentum, with $2,500 providing immediate support.

Bitcoin: Gearing up for a sharp move
Bitcoin (BTC) is trading around $81,000 on Friday, up over 4% so far this week, and awaits a key catalyst that could determine its next directional move. Strong institutional demand is supporting the bullish price action, with spot BTC Exchange Traded Funds (ETFs) on track to record a third straight week of inflows.