Polkadot price ready to breakout after DOT forms double bottom

• Polkadot price is hovering above a support level at $35.47, hinting at the start of a new uptrend.
• A bounce off this barrier is likely to trigger a 20% ascent to $42.77.
• If DOT fails to hold above $32.23, it will invalidate the bullish thesis.

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

Polkadot price eyes higher highs

Polkadot price rallied 72% after bottoming at $32.18 on October 12. This upswing soon began stalling, however, due to profit-taking, knocking DOT back down by roughly 41% in about three weeks, creating the second swing low at $32.18. 

This development has led to the formation of a double bottom reversal pattern, hinting at the potential for more upside. So far, Polkadot price has rallied only 22% and is likely to provide another ‘buy’ opportunity before it enters an ‘up only’ bullish mode.

In fact, DOT is currently in a buy zone as it retests the $35.47 support floor. A bounce off this level will likely trigger a 20% surge to $42.77. Polkadot price needs to pierce through the $37.55 hurdle to confirm the start of this new uptrend, however.

DOT/USDT 12-hour chart

Regardless of the bullish outlook, if Polkadot price fails to hold above the $35.47 support level, it will suggest that investors are not done booking profits. In such a situation, DOT is likely to revisit the $32.23 demand barrier. 

While there is a chance Polkadot price might sweep below this level to collect liquidity, a daily close below it will invalidate the bullish thesis.

In such a situation, market participants can expect DOT to continue its descent to the next platform at $29.74.