- Polkadot price dips back below a critical level in a short profit-taking phase.
- As global markets reassess the situation, the slightest tailwind will trigger massive investor inflows.
- Expect price action’s current fade to be contained – with the next target set at $30.
Polkadot (DOT) is clawing its way back after an extended decline, renewing interest from bullish investors. Agile traders were able to pick up DOT coins at the longer-term green ascending trend line, creating a bounce-off move back towards $27, in just two trading days. As the price action takes a slight breather today, investors and traders who missed out on the initial rally have been offered a new window of opportunity. Expect to see further inflows from funds to ramp up price action towards $30.
Polkadot price action set for $30, a crucial longer term objective
Polkadot price action is at a turning point in the trend where cool-headed investors are expected to sit on their hands and refrain from taking large chunks of profit, as they wait for prices to cruise higher. The entry on Monday at the green ascending trend line was a perfect technical play that many experienced market participants will have used to join DOT price action. The initial rally pushed higher towards $27.23 but is seeing a pullback now as short-term participants book profits and global markets remain muted.
Expect the pullback in DOT price action to be contained as major fundamental changes are unlikely. nvestors that missed the first entry point can also now join the trend as it pops higher, with the Polkadot price reaching $30 potentially by Friday. That level will be crucial for an extension of the uptrend as it is where the monthly pivot and both the 200-day and the 55-day Simple Moving Averages (SMAs) are located. If bulls can refrain from taking large profits too soon , a death cross (crossing 55-day below 200-day SMA) can be avoided, and a return to $50 could be in the cards longer term.
DOT/USD daily chart
The risk to the downside comes from geopolitical conflicts fading into the background. There is a chance, however, that these could quickly flare up again and spark a broad based sell-off in the markets, which would cause significant headwinds for Polkadot. Bulls could be pushed against the green ascending trend line as pressure mounts – with a break towards $20.50 and the monthly S1 trying to take the pressure and provide a floor. At such a level investors would likely see Polkadot price as offering a seductive discount opportunity, rather than part of a broader sell-off.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.