- Polkadot price is experiencing a pullback after failing to retest the 70.5% Fibonacci retracement level at $38.30.
- A 10% pullback to retest the 50% Fibonacci retracement level at $30.14 is likely.
- If DOT price produces a daily close below $29.14, it will invalidate the bullish thesis.
Polkadot price has struggled to successfully rise past the high probability reversal zone for over a month now. The recent attempt to shatter it failed, leading to a local top on October 12. Since then, DOT has been in a downtrend and is likely to continue heading lower.
Polkadot price needs to blow off steam
Polkadot price set up three swing highs between September 7 and October 10. However, the most recent one failed to retest the 70.5% Fibonacci retracement level at $38.30, leading to an 11% pullback to where DOT currently stands.
While this downswing was likely, investors need to watch for an extension of this correction, causing a retest of the 50% Fibonacci retracement level at $30.14. Such a move will allow Polkadot price to produce an equal bottom and give the uptrend another go.
If successful, DOT could put the 70.5% Fibonacci retracement level at $38.30 in its crosshairs and even reach the 79% Fibonacci retracement level at $41.68. However, a decisive close above $41.68 will allow Polkadot price to tag the range high at $50.04, constituting a 65% ascent.
DOT/USDT 1-day chart
A 10% retracement to the 50% Fibonacci retracement level at $30.14 might seem unlikely. DOT has a chance to reverse its trend quickly, especially if BTC fails its display of power. In that case, altcoins, including DOT, have a chance to prove themselves.
Polkadot price will invalidate the bullish thesis if it fails to hold above the $29.14 support floor. This move might result in a retracement to the $25.21 or $22.23 footholds.
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.