Lorenzo Stroe
Independent Analyst
- Polkadot price is contained inside a symmetrical triangle pattern on the 12-hour chart.
- Bulls must defend a critical support level at $4.8 to avoid a colossal 34% drop.
Polkadot is currently trading at $4.81 just above a crucial support level. The digital asset has been under consolidation since November 23. The entire cryptocurrency market turned bearish in the past 24 hours, with XRP leading the way, dropping below $0.22.
Polkadot price awaits a clear breakdown or breakout
DOT is trading just above the critical support level at $4.8 which is the lower trendline of the symmetrical triangle pattern. Bulls must defend this level and climb above the 100-SMA at $4.9 to recover some strength.
DOT/USD 12-hour chart
If bulls can push Polkadot price above the 100-SMA and the 50-SMA, it will quickly jump towards the upper boundary of the pattern at $5.4. A breakout above this point can easily drive DOT towards a high of $7.3.
On the other hand, if bears continue in control of the trend and push Polkadot below $4.8, they will aim for a price target of $3.2 in the long-term, obtained by using the height of the pattern as a reference point.
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