- Polkadot price coils up between the 50-day SMA and the three-day demand zone, extending from $10.36 to $15.65.
- A breakout is likely to result in a 30% move to $22.23, coinciding with the 100-day SMA.
- A decisive three-day candlestick close below the $10.36 level will invalidate the bullish thesis for DOT.
Polkadot price has faced a constant barrage of hurdles that have prevented it from heading higher in the past few weeks. The downswing is currently consolidating above the three-day demand zone, and the said huddle, suggests a breakout on the horizon.
Polkadot price at make or breakout moment
Polkadot price has crashed 74% since its all-time high in November 2021 to retest the $10.36 to $15.65 demand zone. The second retest has pushed DOT higher by 24% to where it currently trades - $17.49.
The 50-day Simple Moving Average (SMA) has remained a single and constant source of selling pressure, limiting the uptrend. So far, DOT faced roughly five rejections at the hand of the 50-day SMA.
The most recent rejections have pushed Polkadot price to consolidate between the said SMA and the three-day demand zone. Therefore, a breakout from this range will lead to gains for holders.
Due to Bitcoin’s position, investors can expect Polkadot price and altcoins in general to experience a bullish move by the end of this week. Hence, a move above the 50-day SMA will trigger a 30% ascent to the immediate barrier at $22.23, coinciding with the 100-day SMA.
Interested investors can open long position from the current location and book profits around $22.23 to book roughly 30% gains.
DOT/USDT 1-day chart
As bullish as the Polkadot price action might seem, it’s short-term future is determined by the big crypto due to the strong historical correlation between the two. Hence, a sudden flash crash in BTC could turn the bullish outlook sour in mere seconds.
If such a move were to occur it would push Polkadot price to produce a decisive move below the $10.36 barrier, creating a lower low and invalidating the bullish thesis for DOT. This development could also open the path for bears to retest the $10 psychological level or lower.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.