Polkadot Price Prediction: DOT could continue the uptrend, rise 30% if these conditions are met

Polkadot (DOT) price was among the most affected during the January 2 crash instigated by the Matrixport report. With the market recording the largest altcoin liquidations in two years, the DOT price fell an outstanding 20% in hours.

Also Read Polkadot Price Prediction: DOT likely to crash 10% with history likely on repeat mode

Polkadot price could fall despite a voluminous treasury

Polkadot (DOT) treasury stands among the largest and most decentralized, with the latest data showing more than 44 million DOT available for distribution towards ecosystem growth.

Polkadot treasury

Nevertheless, even with such a voluminous bucket, Polkadot price may be due for a fall, unless the bulls play their hand well.

Polkadot price could rise if these happen

Polkadot price is trading below the ascending line, with the potential to extend the fall. This is because the  Relative Strength Index (RSI), which quantifies buying momentum, is dropping to show dwindling buying pressure. Also, the Average Direction Index (ADX) indicator, which quantifies trend strength, is rising, to show the slump is becoming stronger.

Increased selling pressure could see Polkadot price extend the fall, slipping past the $7.000 psychological level or in the dire case, extrapolate the fall to tag the $6.500 range low, levels last tested on January 2. A break and close below this level would confirm the continuation of the downtrend.

Further supporting the downtrend thesis is the position of the Awesome Oscillator (AO) indicator in the negative territory, with red-hot histogram bars, suggesting the bears have a strong presence in the DOT market.

DOT/USDT 4-hour chart

However, if bullish momentum increases, enough to set the RSI above the descending trendline, and subsequently restore the Polkadot price above the ascending trendline, it would rekindle the possibility of a continuation north.

Key levels to watch in the event of an uptrend would be the $8.124, and $8.807 levels. These are areas where the altcoin faced a rejection previously. Overcoming them would therefore set the pace for a continuation of the uptrend.

In a highly bullish case, the uptrend could see DOT market value reclaim the range high at $9.593 by clearing the $9.419 barrier. Such a move would constitute a 30% climb above current levels.

(This story was corrected on January 8 at 07:40 GMT to say that Polkadot could fall to $6.5, not $0.65.)