Polkadot price slides towards demand zone for chance of a reversal

Polkadot price is approaching an inflection point that could potentially reverse the downtrend and allow bulls to take control. This development comes as BTC is also attempting to find a stable support level to kick-start its recovery rally, making a bullish outlook more likely for DOT too.

Polkadot price searches for stable footing

Polkadot price has crashed roughly 29% since August 10, allowing it to retest the range low at $6.85.  So far, this level seems to be holding up pretty well, and if buyers step in, a reversal might occur from the current position at $6.94. 

However, the ideal scenario would be for Polkadot price to fall a little more, tagging the $5.94 to $6.51 demand zone. Due to the imbalance here, it’s a good place for investors to expect a bullish momentum spike that pushes DOT to kick-start an uptrend. 

The equal highs formed at $7.77 would be the first target for Polkadot bulls, but penetration and subsequent flipping of the level into a support floor will allow buyers to extend the run-up to the next equal high formed at $9.65. This move could constitute a 48% gain when measured from $6.51 and is likely where the local top will form.

DOT/USDT 1-day chart

On the other hand, if the buyers fail to make a comeback when Polkadot price dips into the $5.94 to $6.51 demand zone, it will indicate a dearth of bullish momentum. This unfortunate development could cause DOT to produce a daily candlestick close below $5.94, which would invalidate the bullish thesis by creating a lower low.

In such a case, Polkadot price might revisit $5.50 and the $5 psychological levels in search of key support. 

Note:

A reversal in Bitcoin price could see altcoins do the same, and the video attached below details a potential short-term recovery rally for BTC.