Polkadot price hints at a 25% ascent as DOT approaches inflection point
- Polkadot price collected liquidity below $17.97 support level, signaling a possibe recovery.
- A bounce off this level will likely trigger a quick run-up to $21.20 and subsequent hurdles.
- A four-hour candlestick close below $17.15 will invalidate the bullish thesis for DOT.
Polkadot price has been on a downtrend since its initial leg up reached a local top on February 8. On February 19, DOT swept below one of the two crucial support levels to collect liquidity, suggesting that an uptrend is likely.
Polkadot price at a decisive moment
Polkadot price retraced 24% from February 8 and sliced through the $19.22 support level, and made its way for the sell-stop liquidity resting below the $17.97 platform. This purging of liquidity often follows a surge in price.
Therefore, investors can expect DOT to trigger an uptrend to retest the recently flipped hurdles at $17.97 and $21.20. Clearing these levels will allow Polkadot price to tag the $22.65 barrier, bringing the total ascent to 25%.
In a highly bullish case, DOT could extend higher and revisit the four-hour supply zone, extending from $23.93 to $25.59. This move, however, would bring the total gain to 32%.
An alternative scenario of how this uptrend could play out is after Polkadot price digs deeper and collects another set of sell-stops resting below the $17.14 barrier.
DOT/USDT 4-hour chart
While things are looking up for Polkadot price, a four-hour candlestick close below $17.15 will create a lower low and invalidate the bullish thesis. In this situation, panicking holders might drive Polkadot price to crash lower and tag the $16.12 barrier. Here, sidelined buyers might enter the market and give the uptrend another go.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
