Polkadot price gathers steam for 25% advance as DOT forms a bottom
|- Polkadot price seems to be coming off its local bottom at $24.84 as recovery kick-starts.
- Investors can expect DOT to continue its ascent and rally 25% to retest $36.84.
- A breakdown of the $24.84 swing low will invalidate the bullish thesis.
Polkadot price has set up a swing high after the recent tumble and has recently confirmed the start of an uptrend. As the crypto markets begin to recover, DOT may reveal an optimistic outlook shortly.
Polkadot price prepares a higher high
Polkadot price set up a swing low at $24.84 after the recent flash crash on December 4. In less than three days, DOT set up a higher low, suggesting increased buying power. Moreover, the altcoin has also set up a higher high on December 7, indicating that an uptrend has begun.
Going forward, if this bullish momentum continues, investors can expect Polkadot price to rally 12% from its current position at $29.52 to $35.05. This move will face resistance at the top, but DOT could extend to the next level at $36.84 and collect the liquidity resting above it if bids continue to pile up.
In total, the run-up would constitute a 25% ascent and set the stage for an even advanced recovery where Polkadot price could aim at retesting its all-time high of $55.09.
DOT/USDT 4-hour chart
On the other hand, if Polkadot price fails to keep its uptrend intact, it will likely head lower and create a lower low below the recent swing point at $28.02. While this development is not conducive for an uptrend, investors should remain wary.
If the selling pressure increases, DOT could revisit the $24.84 support level. A breakdown of this barrier will create a lower low and invalidate the bullish thesis for Polkadot price.
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.