Polkadot price to undergo bullish retracement before DOT retests $24
- Polkadot price faces the $20.46, $21.28 and $22.30 hurdles ahead, suggesting that the ideal direction is to head south.
- The market makers are likely to push DOT below $17.97 or $17.14 to collect the sell-side liquidity resting below it before triggering an upswing.
- A six-hour candlestick close below $17.14 will invalidate the bullish thesis.
Polkadot price has left plenty of uncollected liquidity since January 24. The resulting uptrend faces multiple hurdles, suggesting that DOT could head lower before establishing a firm bullish bias.
Polkadot price needs a base for liftoff
Polkadot price currently faces multiple hurdles beyond $20.46, preventing its uptrend from progressing smoothly. $21.28 and $22.30 are initial blockades that could stop the rally dead in its tracks. Moreover, the double bottom formation at $17.97 and $17.14 has left a decent amount of sell-side liquidity uncollected.
There is a high chance, therefore, that market makers can push DOT to slide lower to collect these untapped liquidity pools. Hence, investors can expect the Polkadot price to correct up to 14% in the coming days.
This downswing will provide buyers with an opportunity to accumulate DOT at a discounted rate. Interested investors can position themselves long at $17.97 or $17.14 and book profits at $21.28, $22.30 and the lower limit of the supply zone, extending from $23.93 to $25.59.
DOT/USDT 4-hour chart
The bullish bias is likely to remain alive even if Polkadot price temporarily sweeps the $17.14 support level. Any six-hour candlestick close below this barrier, however, will invalidate the bullish thesis. In this case, the Polkadot price is likely to revisit the $16.12 support floor – at that level, however, buyers may well attempt another comeback.
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.
