Polkadot Price Prediction: Losses could be contained at 10% this week, though bigger issues lay ahead
- Polkadot price is projected to fall 10% this week as DOT faces bad weather.
- DOT sees support coming in near $6 as a vital pivot level.
- In the medium term, the rally could be finished as big bullish signal could fail.
Polkadot (DOT) price action is giving a firm warning to traders and investors who are in it for the longer term. Defining longer-term means at least a few weeks to a few months instead of intraday trading. The famous Golden Cross was almost set to materialize and trigger a bullish wave of demand, ramping up price action, butut that might not happen after this week.
Polkadot price at $6 means no launch
Polkadot price is counting down as nearly all systems are a go for the rocket launch toward $10. That description fitted for DOT in the first weeks of January. Now the rhetoric is rather, “Houston, we have a problem,” as a crucial rocket engine could break down before it is even fired up.
That rocket engine, which is crucial for the launch of DOT, is the possible Golden Cross formation. The 55-day Simple Moving Average (SMA) has only briefly popped above the 200-day SMA. By the time Polkadot price hits $6 in its decline this week, the initial phase of the Golden Cross will come undone, and bulls will flee the scene with another 27% potential loss added on top of the 10% for this week.
DOT/USD weekly chart
It would not be the first time that bulls can land on one of the support elements with either one of the moving averages or the $6 handle. A bounce higher with a break above $6.92 could be the breakout trade, and cue bulls were waiting for a confirmation. That way, the launch toward $10 will still happen, but with an alternative route.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
