- Polkadot price rallied nearly 22% last week and set up a local top at $4.45.
- DOT is likely to retrace to the $3.98 support level and consolidate here before making its next move.
- The resulting bounce is likely going to push the altcoin to the next key hurdle at $4.80.
Polkadot (DOT) price struggles to keep the bullish momentum afloat as it breaks out of a three-month downtrend. This uptrend is undergoing a pullback which could undo the recent gains.
Also read: Polkadot price slightly picks up with increased spending, development adding fuel
Polkadot price ready to shoot higher
Polkadot (DOT) price rallied nearly 22% between October 20 and 26 and created a local top at $4.45. This rally, however, faced exhaustion, leading to a 6% correction to where DOT currently trades at $4.18.
Going forward, investors can expect Polkadot price to retest and consolidate around the $3.98 support level and attract sidelined buyers to extend the recent breakout into an uptrend. The Relative Strength Index (RSI), which is on the decline, is likely to find support at the 50 mean level, supporting the bullish outlook noted from a technical standpoint.
A bounce from this level is likely to propel Polkadot price to overcome the $4.31 resistance level and tag the subsequent hurdle at $4.80 and $5.
Read more: Polkadot Price Forecast: DOT likely to slide to $3.70 as weekend rally fizzles out
DOT/USDT 1-day chart
On the other hand, if Polkadot price fails to hold above the $3.98 or $3.90 support levels, it will signal a weak bullish camp. In such a case, DOT is likely to revisit the $3.70 barrier. A breakdown of this level on the daily time frame will invalidate the bullish thesis as it would threaten the continuation of a downtrend by the production of a lower low.
In such a case, Polkadot price could revisit the $3.50 support level.
Also read: Web3 Foundation deploying 5 million DOT to fund projects could act as a savior to Polkadot price
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.