Polkadot price presents a risky long opportunity as DOT hints at a 26% advance
- Polkadot price is at an inflection point as it teeters at the edge of a support level at $24.18.
- A quick recovery above this barrier could be the key to triggering a 26% run-up to $30.5.
- A four-hour candlestick close below $18.71 will create a lower low, invalidating the bullish thesis.
Polkadot price is at a point in its journey where bulls are waiting to make a comeback. DOT needs to reclaim one crucial barrier to shift the odds against bears. Doing so, could trigger a rally that retests a weekly resistance barrier.
Polkadot price at wits’ end
Polkadot price has retested the weekly support level at $24.1 six times over the past month. DOT shattered this barrier twice in the last two days and is currently below it. If the bulls reclaim this level, there is a chance it could trigger a 26% rally.
Investors can enter long at the current position and expect DOT to retest the $28.68 barrier. Here, traders can offload a portion of their position and book profit, while keeping the remainder of their position for a retest of the weekly resistance barrier at $30.5 and the liquidity resting around that level.
In a highly bullish case, Polkadot price could extend and revisit the 3-day supply zone, from $32.25 to $37.56.
DOT/USDT 4-hour chart
If Polkadot price fails to recover above the weekly support level at $24.1, it will indicate buying pressure is weak. DOT could slide lower and form a double bottom at 22.78, which will signal buyers might make another comeback.
If DOT produces a four-hour candlestick close below $18.71 it will create a lower low, invalidating the bullish thesis. This move could open the path for Polkadot price to crash 10% to $16.89.
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.
