Why Polkadot price could re-route north towards $8.60
- Polkadot price has lost 30% of its market value this month.
- DOT price is still within bounds of bullish support on the Relative Strength Index.
- Invalidation of the bullish thesis is a breach below $5.
Polkadot price could witness a bullish retracement in the coming days targeting the mid $8 zone.
Polkadot price could rebound
Polkadot price continues to lose ground as the bears suppress prices during the final trading week of August. Since August 12, the Ethereum-based virtual reality token has fallen 30%. Despite the bearish control, traders should consider keeping the DOT price on their radar for a profitable opportunity in the coming days.
Polkadot price currently auctions at $7.23. The steep decline was strong enough to breach both the 8- & 21- day simple moving averages. Although the bears have had full control of the DOT price throughout the summer, a profitable retracement into the mid $8 zone could occur in the coming days. The sparse volume accompanied by the current RSI reading confirms that the bears may be loosening their grip.
DOT/USDT 1-Day Chart
Using the Average True Range indicator, invalidation of the bearish thesis is a breach below $5. Bullish targets lie near a previous week’s congestive zone at $8.60. This wider validation should help avoid any last-minute liquidity hunts before August ends.
In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market - FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
