Polkadot Price Prediction: DOT to provide a 20% long opportunity

Polkadot price looks ripe for a 20% move if it can clear two crucial blockades.
A four-hour candlestick close above $30.016 could be the key to triggering a 20% run-up to $35.84.
A breakdown of the $23.27 support floor will invalidate the bullish thesis for DOT.

Polkadot price is preparing for a massive uptrend, but it needs to overcome two significant resistance barriers. Doing so will allow DOT to rally without hesitation to another major hurdle.

Polkadot price and its bullish outlook

Polkadot price rallied 25% between January 10 and January 15, setting up a swing high at $28.39, just below the weekly resistance barrier at $28.84. DOT fell short due to the presence of the 50-day Simple Moving Average (SMA) at $28.17.

As a result, Polkadot price has dropped 7% to where it currently stands - $26.66. Going forward, investors can prematurely enter long here or wait for a flip of the weekly resistance barrier at $28.84 and the 200-day SMA at $29.90 – or roughly $30 into a support level.

Doing this will confirm the start of an uptrend. In this case, DOT will likely trigger a bull rally that retests the weekly resistance barrier at $35.84 after a 20% ascent. Interestingly, this level coincides with the 100-day SMA, making this target a local top and a place where investors can book profits.

DOT/USDT 4-hour chart

While things are looking a little on the fence for the Polkadot price due to the $28.85 and the $30 hurdles, a failure to catch traction could backfire. If DOT slides lower, producing a four-hour candlestick close below the $23.27 weekly support level, it will create a lower low and invalidate the bullish thesis.

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.