Polkadot price ready to break consolidation and rally 15%
- Polkadot price stabilizes around the range low at $6.85, hinting at a reversal.
- Investors can expect DOT to trigger a 15% rally to $8.05.
- A daily candlestick close below $6.85 will invalidate the bullish thesis.
Polkadot price has retested the range low for the fifth time and is finally showing signs of moving higher. A bounce from its current position could trigger a quick but brief run-up. However, this move could extend to higher levels if the momentum is strong.
Polkadot price ready for take-off.
Polkadot price set up a range, extending from $6.85 to $11.86 and has been trading in it since mid-May. Although DOT deviated below the range low between June and July, the recovery above this level led to a 42% run-up that pushed past the range’s midpoint at $9.35 briefly.
Since August 13, Polkadot price has been on a downtrend as investors continue to book profits. This down move resulted in DOT retesting the range low at $6.85, but with Bitcoin price looking ready for a run-up, altcoins are likely to follow along.
Hence, investors should keep a close Polkadot price to open a long position and await a 15% move to $8.05. If the momentum is high enough, DOT could extend this run-up to retest the midpoint at $9.35, bringing the total gain to 33%.
DOT/USDT 1-day chart
While things are looking up for Polkadot price, a sudden downturn in Bitcoin price could ruin the bullish outlook for DOT. If Polkadot price produces a daily candlestick close below the range low at $6.85, it will invalidate the bearish thesis.
This development could see DOT retest the daily demand zone, extending from $6.51 to $5.94.
Note:
The video attached below talks about Bitcoin price and its potential outlook, which could influence Polkadot price.
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.
