- Polkadot price had a solid recovery after the sell-off in major cryptocurrencies.
- Although DOT broke a crucial bearish trend line, the upside looks very limited.
- Only a break of $17 can lead to an upswing to $20.
Polkadot price looks to be stuck in a sideways range where we do not see much real momentum for a move to the upside. But a squeeze seems finally ready to be set and push DOT above that $17 level we have been discussing since last week.
Polkadot price squeeze to the upside will happen
We have seen much potential these past few days in the recovery of all the significant cryptocurrencies. It was a very whipsaw reaction since this weekend. But now, it looks like the bar is set to the upside for Polkadot and others to go higher. The global risk-on sentiment in markets is still intact.
DOT will need that perfect surrounding to be able to jump above $17 as the level has already been tested seven times in the past three weeks. Today it looks set for another retest.
Once above, Polkadot price still sees minimal upside potential. With the 200-day Simple Moving Average (SMA) at $19.20, the upside looks relatively capped. Add to that the monthly pivot at $19.50, and buyers will have two reasons to sell. Short-sellers will be watching those levels to build up a short position.
DOT/USD daily chart
It looks like it is time for breaking higher above $16.94. For the moment, however, buying power is still there; as to the downside, we still see higher lows. DOT will squeeze against that $16.94 level in the coming hours or days.
Should the green ascending trend line break to the downside in the absence of buyers, expect a test of $10 as a psychological level. Just below, Polkadot price has its first monthly support coming in.
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.