- Polkadot price supported by $31.61 historical level.
- Bulls look to complete the range to the upside, helped by the ascending trend line.
- A short squeeze could happen if bulls can push price action further upward.
Polkadot (DOT) bears are scrambling to cash in on their profits as price action for DOT reverses quite rapidly, with bulls overtaking control and pushing price action back toward levels achieved before the correction began. Some technical elements are helping bulls to lengthen further the uptrend, and momentum is building to hit $37.03 to the upside.
Polkadot bulls are squeezing bears, and DOT price action can only go north from here
Polkadot price is on a tear after the correction in the cryptocurrencies over the past few days. With markets now entirely focused on risk-on, Polkadot is being added to several portfolios and positions, and buyers are waiting for the proper entry levels to add even more to their positions, making DOT stick to the uptrend. The best entry point was $25.19, with the double bottom formation and the downtrend halted. In case buyers missed that opportunity, around $28 another good entry level offered itself. With both the 55-day and the 200-day Simple Moving Average (SMA) just below and the historical $27.23 level, bulls had plenty of reasons to go long and put their stops safely below these elements.
DOT price action looks to be taking a breather today, offering some excellent entry levels for a buyer who came in late and is still looking to join the uptrend in Polkadot. DOT price on Friday bounced off $31.61 and is trying to get back above the green ascending trend line that was the driving force in the summer rally. By the bulls reclaiming this element, new buyers will join in again, and others will want to add to their position.
DOT/USD daily chart
With momentum and volume building up further, expect bulls to try and hit $37.03 as the next profit target. That would be the point where the rally might come to a halt as sellers will undoubtedly try to get in here to push price action back and keep it from trying to go to $40.
Should price action in DOT start to fade, when Polkadot price would certainly close below the green ascending trend line, this would signal weakness and a shortage of buying volume. Sellers will jump on the occasion to run price action down again, back to $28, where sellers will face plenty of resistance.
Like this article? Help us with some feedback by answering this survey:
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: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.