Failed attempts at bull rally could crash Polkadot price to this level
|- Polkadot price is at a make or break point as it trades under a resistance cluster around $16.
- Investors can expect a 15% crash if DOT bulls fail to overcome the aforementioned hurdle.
- A daily candlestick close above $23.15 will invalidate the bearish thesis.
Polkadot price is at a junction where a failure to breach through significant hurdles will result in a corrective phase. On the other hand, a swift recovery above these levels could set a base for impressive gains.
Polkadot price needs to step up its game
Polkadot price created a range that extends from $15.83 and $23.15 which it has been trading inside since it formed on February 8. After a quick deviation below the swing low at $15.83, DOT rallied roughly 69% and set a swing high at $23.85.
This upswing soon hit a peak of euphoria that caused investors to book profits, leading to a corrective wave that pushed it down by 28%. The retracement also pushed it below the 50% retracement level at $19.49.
The last attempt at an uptrend pushed Polkadot price by 15% where it pierced the midpoint and the 50-day, 100-day Simple Moving Averages (SMAs) but failed to produce a decisive close above these hurdles at $19.62. As a result, DOT faced immense rejection causing an 8% pullback to where it currently trades - $18.30.
If the buyers fail to move above $19.62, the rejection is likely going to push Polkadot price lower to retest the range low at $15.83. In a highly bearish case, DOT could extend lower and retest $13.64.
DOT/USDT 1-day chart
While things are looking bearish for Polkadot price, a daily candlestick close above $23.15 will invalidate the bearish thesis. In such a case, DOT will have the chance to rally and retest the $24.18 and $30.50 barriers.
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.