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.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram