Polkadot price to revisit $22 as DOT establishes a launchpad
- Polkadot price retests the three-day demand zone, extending from $10.37 to $15.66, anticipating a bounce.
- A quick run-up would allow DOT to retest two hurdles - $15.97 and $22.23.
- A decisive close below $10.37 will invalidate the bullish thesis.
Polkadot price has arrived at a stable support level after crashing violently and falling since November 2021. A retest of this level is likely to result in a swift bounce that triggers a quick uptrend.
Polkadot price contemplates reversal
Polkadot price has crashed 73% from its all-time high at $53.50 on November 9, 2021. This downswing has now arrived at the three-day demand zone, extending from $10.37 to $15.66.
Investors can expect a quick relief rally to emerge as DOT bounces off this barrier. The altcoin will face the $18.01 hurdle after rallying roughly 12% from its opening price.
Clearing this blockade is crucial to making a run for the $20 psychological level. There may be an outcome where DOT could set a local top here. However, if bulls band together, there could be an extension of the uptrend to $22.23. This move would constitute a 40% ascent from the current position - $16 and is likely where the local top will form for Polkadot price.
DOT/USDT 3-day chart
On the other hand, if Polkadot price fails to bounce off the $10.37 to $15.66 demand zone, it will explore lower levels. As long as DOT stays inside this area, the bullish outlook will not face any threats.
A daily or a three-day candlestick close below $10.37, however, will invalidate the possibility of a bullish outlook and indicate that Polkadot price is likely to retest $10.09 or the subsequent barrier at $8.31.
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.
