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Polkadot price set to drop that last mile before rallying a prosperous journey toward $8

  • Polkadot price tanks over 3% for the week as altcoins are performing badly all around.
  • DOT needs to settle the last few cents to find triple support.
  • Expect to see bulls trembling to get in at $6.23 with $8 as the target within a few weeks.

Polkadot (DOT) price is nearing a very good entry opportunity for traders and investors who believe in an uptrend. Looking from a purely technical point of view, and leaving all external forces aside, DOT is nearing that crucial, pivotal level as bulls are set to catch the price action. Expect a quick turnaround higher once the pivotal level has been hit with $8 on the docket in the coming weeks.

Polkadot price needed breather before entering next rally

Polkadot price has bulls gearing up and standing ready for the collision course DOT is on toward a vital support level. That level can be found at $6.23, where not only a historic pivotal level can be found. Additionally, the 55-day Simple Moving Average (SMA) is nearby and has recently crossed the 200-day SMA in a Golden Cross pattern

DOT, unfortunately, is not yet in that perfect Golden Cross as the 200-day SMA is still tied to the downside. That means that $6.23 could see some very bearish pressure, and it is up to the bulls to defend it. Once price action bounces, expect to see confirmation with a leg higher and $8, a 28% gain, as the price target for the coming weeks.  

DOT/USD daily chart

DOT/USD daily chart

As mentioned, bears could see their chance here to try and break the support because the Golden Cross is not confirmed. Should DOT slip below $6.23 and even trade lower than the 200-day SMA, some further weakness could be at hand as bulls will track back on entering. That could give the bears a free ride lower toward at least $5.80 or even $4.40 in a worst case scenario. 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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