Back to the list

Polkadot price prepares for 30% gains as DOT hovers above crucial support


www.fxstreet.com 25 November 2021 08:02, UTC
Reading time: ~2 m

  • Polkadot price might slide below $37.55 to collect liquidity resting around the $35.47 support level.
  • This downswing will provide sidelined buyers an opportunity to accumulate DOT before embarking on a 30% upswing to $45.72.
  • A daily close below $35.47 will invalidate the bullish thesis and likely trigger a descent.

Polkadot price looks to be showing a slightly bullish reaction as it nears a support floor. This uptick in buying pressure could be a lure as DOT could slide lower in search of liquidity. Therefore, investors need to be aware of a potential wick to the downside.

Polkadot price prepares for a move higher

Polkadot price has been on a downswing for roughly three weeks and shows signs of reversal as it hovers above $37.55. While the 30% correction seems done, there is a small chance DOT might dive lower to collect the liquidity resting below the $37.55 support level and fill the fair value gap at $35.47.

This move will provide the buyers with a perfect opportunity to accumulate DOT at a discount. Regardless of where it drops to, investors can expect Polkadot price to kick-start its upswing toward $45.72 thereafter. 

This upswing would constitute a 30% climb from $35.47 or 21% from $37.55. In some cases, DOT could extend to the $47.91 and $49.71 resistance barriers.

DOT/USDT 4-hour chart

DOT/USDT 4-hour chart

While things are looking up for Polkadot price, a breakdown of the $35.47 support floor will indicate a weakness among buyers and increased selling pressure. This move will also invalidate the bullish thesis. 

In this scenario, Polkadot price will retest the $34.27 support level, where it could give the rebound another go.

Back to the list