- Polkadot price action is in a pullback as an attempt to $40 failed with a fade to the downside.
- Buyers took the opportunity to lock in some profit and add some new longs on DOT.
- As long as the green ascending trend line is solid, expect more upside in the coming weeks.
Polkadot (DOT) was overheating after the bear trap last week, where buyers pushed sellers out of their attempt to run price action lower. Price action came off the highs from this summer and rebounded at $31.76. With the green ascending trend line as the backbone of the summer rally still intact, expect another run higher in the coming weeks towards $45.22
Polkadot price is still in favor of the bulls
Polkadot price has had a hot summer with price action gaining over 240%. The jump higher in the last week of august pushed DOT from $24 to $35. In that week, three crucial intermediary levels got broken to the upside. In that rally, bulls had locked in some gains each time, and sellers saw their opportunity for an attempt to take over the price action in DOT. But the overhaul in the week after that resulted in a perfect bear trap. Sellers tried to push the price back to the starting point from this summer, near $11. But they got squeezed out of their attack with buyers catching the falling knife between $20 and $23 and closing last week near $36. A painful move for sellers with no stop loss.
DOT/USD weekly chart
Such a violent move in the previous week called for Polkadot to look for some ground of support where buyers, who missed the opportunity to step in the last week, we’re able to add or join the bull run. That level offered itself at $31.61, originating from May 10. DOT’s price reaction on that level resulted in a perfect bounce off that level. With new volume pouring into the bull run, the next leg is offering itself around $45.22. In the meantime, the green ascending trend line stays safely in the shadows and keeps its powder dry for when sellers try to push price action in DOT below the trend line.
Sellers will want to wait for a pullback to the trend line of the rally. If that breaks, expect sellers to flock in on that event and push the price back towards $20.51.
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.