- Polkadot price seems to have found an inflection point after a rejection from the supply barrier extending from $7.236 to $7.575.
- DOT could recover 10%, flipping the supply zone into a bullish breaker above its upper boundary at $7.575.
- Invalidation of the bullish thesis would occur after a decisive candlestick close below $6.240.
Polkadot (DOT) price continues to endure the strong seller presence due to the supply barrier extending from $7.236 to $7.575. The initial confrontation saw the altcoin rejected nearly 12% and now the bulls may be pushing for a second attempt at this supplier congestion zone.
Also Read: DOT 80% recovery rally nabbed as Polkadot price meets critical supply barrier
Polkadot could rally 10%
Polkadot (DOT) price has found support due to the 25-day Exponential Moving Average (EMA) at $6.387 after a 12% rejection from the supply barrier. Based on the outlook of the Relative Strength Index (RSI), the bulls could be attempting a do-over as this momentum indicator has deviated from an initial southbound move, attempting to pull north.
Increased buyer momentum could see Polkadot price recover the lost ground, confirming the continuation of the uptrend by breaking and closing above the midline of the supply zone at $7.396. Further north, the price could flip the supply barrier into a bullish breaker, confirmed by a move to the range high at $7.900. A move to the upper boundary of the supply zone at $7.575 would constitute a 10% climb above current levels.
In a highly bullish case, Polkadot price could extend a neck higher to tag the $8.000 psychological level, in a move that would denote an 18% climb above current levels.
Notably, with both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators still in the positive territory, the odds still favor the upside.
DOT/USDT 1-day chart
Nevertheless, the MACD has triggered a sell signal, marked by the crossover where the MACD line crosses below the signal line. Traders heeding this call could spell doom for Polkadot price. The AO also shows that the bears are steadily gaining ground, evidenced by the red histogram bars that are edging towards the zero line.
Increased selling pressure could see Polkadot price lose the support due to the 25-day EMA, extending the fall to the $6.240 support level. A daily candlestick close below this level would invalidate the bullish thesis.
In the dire case, Polkadot price could extend the fall to test the 50-day EMA at $5.806, or worse, slipping past this level to target the $4.854 support. This would denote a 29% drop below current levels.
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
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Over $560 million in liquidation
Bitcoin hovers around $97,000 on Wednesday after declining more than 5% the previous day. Ethereum and Ripple follow in BTC’s footsteps and decline 8.3% and 6.15% respectively. This recent pullback has triggered a wave of liquidations, resulting in over $560 million in total liquidations in the crypto.
Crypto market surged to $3.9 trillion record market cap as Solana's revenue plunged in December: Binance
In a report on Monday, Binance Research stated that the crypto market reached a market capitalization milestone of $3.9 trillion in December. The researchers suggest anticipation surrounding Donald Trump's upcoming pro-crypto administration could stretch the bullish momentum in the coming weeks.
Aave V3 taps Aptos blockchain for first non-EVM integration
Aave Labs launched its decentralized lending protocol, Aave v3, on the Aptos testnet following an announcement on its governance platform. This marks the protocol's first non-EVM integration, leveraging Aptos's Move programming language for its v3 functionality.
XRP consolidates below $2.50 as long-term investors offload $470M
XRP price slid 8% towards $2.30 on Tuesday, as bulls failed to reclaim the $2.50 resistance level. On-chain data suggests rising selling pressure for XRP long-term investors ahead of Donald Trump’s inauguration.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.