Polkadot price looks to restart its uptrend as DOT eyes 30% gains

Polkadot price could trigger an uptrend after bouncing off the daily demand zone, extending from $26.23 to $28.15.
DOT could rise 30% to retest $36.89 if it can clear the $32.78 hurdle.
A breakdown of the $26.23 support level will invalidate the bullish thesis.

Polkadot price is retracing toward a crucial support level after a recent run-up. A retest of this area will likely provide DOT with the necessary bullish momentum to kick-start another rally that will extend beyond the recent swing high.

Polkadot price eyes higher highs

Polkadot price rose 17% from December 31, 2021, to January 3 to set up a swing high at $30.88. This run-up faced exhaustion, leading to a 6% retracement to where DOT currently trades - $29.07.

The correction is approaching the daily demand zone, ranging from $26.23 to $28.15. A dip into this area of support will allow Polkadot price to regain the bullish momentum and kick-start its uptrend.

The first hurdle Polkadot price will face is $32.78, roughly 12% away from the current position. Clearing this area will provide DOT with a free space to climb higher and retest $36.89. Assuming Polkadot price tags the said barrier, it would constitute a total of 30% advance and is where the rally will face exhaustion as investors start booking profits.

DOT/USDT 4-hour chart

On the other hand, there is a chance Polkadot price might stop its ascent after the retest of the $32.78 hurdle. Such a development indicates that the buying pressure is insufficient. In this case, an increased selling pressure of excessive take-profit activity could undo the run-up.

A four-hour candlestick close below the demand zone’s lower limit at $26.23 will create a lower low, invalidating the bullish thesis.

This scenario will likely open Polkadot price to revisit the $24.05 support level.

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.