Polkadot Price Forecast: DOT eyes breakout to $5 as market bottom beckons

Polkadot price was rejected from the Bollinger band's middle boundary, hence the search for a bottom.
DOT/USD anticipates a robut support above $4 ahead of a breakout eyeing $5.

Polkadot continued with the hunt for a bottom amid consolidation over the weekend. The price is teetering at $4.4, as bulls work around the clock to find a formidable bottom. The least resistance path is horizontal, especially with the Relative Strength Index on the 4-hour chart holding above 40.

Polkadot consolidation approaches the tipping point

The 4-hour chart shows DOT/USD exploring the downside after rejection from the 100 Simple Moving Average (SMA). Support is envisioned at $4.3, but DOT might seek a cushion above $4, as shown on the chart if declines slice through. A market bottom is anticipated in this range, with DOT likely to resume the uptrend from here.

DOT/USD 4-hour chart

The hunt for a formidable bottom is in full gear now that Polkadot is trading under the Bollinger band's middle boundary. According to the Moving Average Convergence Divergence (MACD) on the 1-hour chart, the cryptoasset is bound to retrace some more before a significant breakout comes into the picture. Perhaps from the critical support range mentioned above.

DOT/USD 1-hour chart

It is worth mentioning that DOT/USD will invalidate the downtrend and immediately breakout if it closes the day above the 200 SMA in the hourly timeframe. Some delay is expected at the confluence created by the 50 SMA and the 100 SMA. However, if bulls manage to step above this zone, DOT could embark on a breakout to $5.

DOT/USD 1-hour chart

Polkadot currently holds the ninth position in the market. It has a $3.8 billion market cap and attracted a 24-hour trading volume of $366 million. The platform supports cross-border blockchain transfers for assets and data. The network stands out for its ability to upgrade without the need for hard forks.

Share: Cryptos feed

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.