|

Polkadot price will jump by 20% once DOT moves above this support level

  • Polkadot has made a solid run higher, taking out a few critical price targets. 
  • Today DOT is dipping  slightly lower, which is expected after the rally from yesterday.
  • Buyers who took profit have a perfect entry to add or get in again for the next leg higher.

Polkadot (DOT) made a nice move up on August 31, taking out a few vital profit levels. The first to break was $29.12, originating from June 3. That level also fell in line with the pivot of June, making it a double reason for interest. On August 20 and 21, buyers already tried to claim this level but failed. Price action faded further down after that attempt.

Polkadot price has more room to go if buyers get in at the right point

The pop higher on August 31 easily took out that $29.12 and even tried to claim $31.76, which was up on our chart because of the double top formation on May 20 and 21. Not having been tested since then, but it is still a level to be aware of. Once again, the same sort of pattern is emerging on the chart. Buyers tried to reclaim but failed, and DOT price looks to be fading again. That does not need to be a bad thing for buyers though.

A cooldown after a 27% move in just one day would wear anybody down. Buyers already have locked in some or all their profit, so this kind of correction and paring back of gains is normal.

DOT/USD daily chart

DOT/USD daily chart

It will be necessary now that price action can remain above or rebounce based on three indicators on the chart. The first level that should turn resistance into support is $29.12. If that level does not hold, just below there is the green ascending trend line around $29. Last but not least, if that would not do the trick, there is still the 200-day Simple Moving Average (SMA) at $28 as support.

Sellers who are trying to short DOT from $31.76 will need to keep the levels mentioned above in mind as well, thus making a short at that level not so interesting, as there are many challenges down the road with more risk of being stopped out than cashing in big time.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Editor's Picks

Bitcoin Weekly Forecast: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.
Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
Bitcoin, Ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets
Crypto traders betting on higher prices had about $1.29 billion in positions forcibly closed over the past 24 hours, as the selloff following Binance’s security breach pushed bitcoin, ether and smaller tokens lower. Total liquidations reached $1.53 billion by Friday morning in Asia, according to CoinGlass. Long positions, bets that prices would rise, accounted for 83.8% of the total.
Crypto Today: Bitcoin, Ethereum, XRP sell-off cools after Binance security breach
Cryptocurrency prices are on edge on Friday, with Bitcoin (BTC) delicately holding onto a short-term $78,000 support, Ethereum (ETH) edging lower near $2,200 and Ripple (XRP) attempting a recovery above support established at $1.20. The cooldown follows Binance, the largest crypto exchange, after it reported a hack that impacted about $6.3 billion.
Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.