Polkadot Price Prediction: Aiming for shortterm targets might be problematic

Polkadot price is witnessing a rejection near the mid $6.00 level as two key indicators have forged a barrier.
DOT price fell extremely over sole territory but displayed bullish divergence.
Invalidation of the bearish thesis is a breach above $8.83

Polkadot price may be a challenging chart to forecast in the days to come. Still the technicals point south on larger time frames.

Polkadot price is a tricky short-term chart.

Polkadot price has displayed volatile market behavior recently as the price has ricocheted between $5.60 and $6.20 in an unpredictable fashion. Although the market may continue its volatile streak, scalping DOT price for short-term directions could be problematic in the grand scheme of things.

Polkadot price currently auctions at 6.08. The 8-day exponential (EMA) and 21-day simple (SMA) have formed barriers of resistance near $6.20. The rejection comes after DOT’s impressive 10% rally in 24 hours following the US- Consumer Price Index report. Before the ascension, DOT fell into extremely oversold territory on the Relative Strength Index and showed bullish divergence with the September lows. The subtle bullish signal justified early bulls to enter the market and the 10% rally displayed.

DOT/USDT 12-Hour Chart

Polkadot price now has a decision to make. Early bulls may have already taken partial or all of the profits, but an additional spike toward the $7.00 congestion zone is a reasonable possibility. However, if there is no underlying support at the $6.00 level, the DOT pricer could retest the lows at $5,60 in the coming days.

DOT price is still well within the bounds of a downtrend based on several confounding indicators. Invalidation of the bearish trend could occur if the bulls conquer the $8.83 swing high. In doing so, the bulls could set up a retest of the $10 price levels, resulting in an 88% increase from the current Polkadot price.

In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market. -FXStreet Team

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.