Why Polkadot price could surge by more than 50%
|- Polkadot price hints at retracement to $20.34 after 37% rally.
- Due to the bulls exhaustion, DOT could pull back before embarking on a 55% upswing.
- A daily candlestick close below $18.65 will invalidate the bullish thesis.
Polkadot price shows signs of continuing the uptrend as seen in the 2020 fractal. If history repeats itself, DOT and its holders are likely to enjoy a prosperous future.
Polkadot price at an inflection point
Polkadot price set a triple bottom setup at $3.91 for roughly 44 days in September 2020. This formation was followed by an explosive move that pushed DOT to its all-time high at $50. The nuances before and after the triple bottom formation seem to be repeating again, suggesting a fractal formation.
Since the triple bottom setup on March 6, DOT has rallied 40% and is now facing the $22.45 resistance barrier. A minor retracement to the immediate support level at $20.34 seems likely considering the exponential run-up over the past two weeks.
This pullback will allow the bulls to recuperate, triggering another leg up for Polkadot price. This move, however, will aim for a retest of the $31.40 resistance barrier, bringing the total gain to 55%.
In an extreme bullish run, the Polkadot price could fail to retrace and directly flip the $22.45 hurdle. As long as DOT manages to sustain above this newly formed support level, the uptrend scenario will remain intact and suggest the possibility of a retest to $31.40.
DOT/USDT 1-day chart
While the fractal seems to be playing out well for the Polkadot price, a reversal in Bitcoin’s directional bias could negatively impact DOT bulls. In such a case, a daily candlestick close below $18.65 will invalidate the bullish thesis for the Polkadot price. By undoing the recent gains, the downswing could trigger a panic sell, pushing back DOT to revisit the $15.85 support level.
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