Polkadot Price Prediction: DOT to provide a 20% long opportunity
- Polkadot price looks ripe for a 20% move if it can clear two crucial blockades.
- A four-hour candlestick close above $30.016 could be the key to triggering a 20% run-up to $35.84.
- A breakdown of the $23.27 support floor will invalidate the bullish thesis for DOT.
Polkadot price is preparing for a massive uptrend, but it needs to overcome two significant resistance barriers. Doing so will allow DOT to rally without hesitation to another major hurdle.
Polkadot price and its bullish outlook
Polkadot price rallied 25% between January 10 and January 15, setting up a swing high at $28.39, just below the weekly resistance barrier at $28.84. DOT fell short due to the presence of the 50-day Simple Moving Average (SMA) at $28.17.
As a result, Polkadot price has dropped 7% to where it currently stands - $26.66. Going forward, investors can prematurely enter long here or wait for a flip of the weekly resistance barrier at $28.84 and the 200-day SMA at $29.90 – or roughly $30 into a support level.
Doing this will confirm the start of an uptrend. In this case, DOT will likely trigger a bull rally that retests the weekly resistance barrier at $35.84 after a 20% ascent. Interestingly, this level coincides with the 100-day SMA, making this target a local top and a place where investors can book profits.
DOT/USDT 4-hour chart
While things are looking a little on the fence for the Polkadot price due to the $28.85 and the $30 hurdles, a failure to catch traction could backfire. If DOT slides lower, producing a four-hour candlestick close below the $23.27 weekly support level, it will create a lower low and invalidate the bullish thesis.
Author
Akash Girimath
FXStreet
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.
