• Polkadot is on the path to recovery after the correction at the beginning of this week.
  • Upside looks limited with a double technical resistance at $31.76.
  • Once that is cleared, buyers have an incentive to go to $37.02.

Polkadot (DOT) has not been the easiest of cryptocurrencies for buyers to look for good entry levels for a long. The buy-the-dip strategy was complicated as no fundamental entry levels offered themselves. On September 7, the price action just above the 55-day Simple Moving Average (SMA) looked nice, but not many buyers will have dared to catch a falling knife around $22.

Polkadot buyers can plant their flag back above $32.50

The false break at $29.12 on September 8 will probably have tricked a few buyers into a bull trap, and they never saw any positive P&L on their entry that day. Only the genuinely patient buyers with a strict plan will have had the guts and wide stop to stay in the trade and lived to die another day. Experienced traders will have waited another day for the dust to settle further and will have loved the entry or fade-in between the monthly pivot at $26.64 and $27.22. Price action bounced off perfectly from those levels.

The body of the candle got supported by the 200-day SMA at $27.81. This gave buyers three solid reasons to get in as price action looked healthy and more logical after the swings from previous days.

Buyers already tried to reclaim the $31.76 barrier and the green ascending trend line from July 20, but they failed at their first attempt. A second attempt looks to be unfolding today with price action firmly above $29.12, and during the Asian session an attack above $31.76 already occurred. It is now vital for DOT to be able to close the week above there.

DOT/USD daily chart
DOT/USD daily chart

Expect a possible retest at $29.12. That level should hold within the uptrend. Favorable tailwinds from global markets returning to risk-on should help additional buyers to step into DOT. Once price action can jump above $32.50, expect further upside. By the end of the US session, a close above there would mean further upside next week toward a retest of $37.02.


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


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP