Polkadot price set to eke out 10% gains for the week as the world mourns

Polkadot price trades 3% higher on the day as the dollar backs off.
DOT price could see a weekly gain of over 13% towards the end of the opening bell.
As the world mourns the passing of Queen Elisabeth, it looks like London trading hubs are deleveraging their dollar longs.

Polkadot (DOT) price pops up another 3% during the European trading session as markets are reassessing the situation and the Queen of England passes away. Positions are being squared across the board with the dollar on the backfoot, opening up room for cryptocurrencies to move higher. DOT price could be on the verge of breaking above a big technical cap opening up further expansion going into the week ahead.

DOT price could continue to rally towards $10

Polkadot price shoots higher as the dollar completely backs off and opens up a wide range of room for equities and cryptocurrencies. For Polkadot, that means a move up towards the monthly pivot and the 55-day Simple Moving Average at $7.82. That level will be key in the future into next week and over the weekend.

DOT price could be set for a staggering rally up to $10.35 in a bold but doable move that could bring another 31% upside potential. That would depend on two elements: if bulls can close the price action on Sunday above the monthly pivot and the 55-day SMA at $7.82, and if the dollar on Monday weakens even more, as the UK government issues a possible whole week of mourning. In such a case, the high of August and $10.35 could come into play if those two elements have been met.

DOT/USD Daily chart

The risk to the downside, of course, could be that the move that is unfolding today will be erased on Monday once traders and markets are back to focusing on more mundane matters. This move today is purely sentimental, and due to several hedge funds and banks following preset scenarios and unloading their positions because a big political figure has died or a war has broken out. Traders are likely to see heavy buying back into those dollar-long positions on Monday, with DOT price collapsing back to $7.00.

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.

Join Telegram