- Polkadot price faces the $20.46, $21.28 and $22.30 hurdles ahead, suggesting that the ideal direction is to head south.
- The market makers are likely to push DOT below $17.97 or $17.14 to collect the sell-side liquidity resting below it before triggering an upswing.
- A six-hour candlestick close below $17.14 will invalidate the bullish thesis.
Polkadot price has left plenty of uncollected liquidity since January 24. The resulting uptrend faces multiple hurdles, suggesting that DOT could head lower before establishing a firm bullish bias.
Polkadot price needs a base for liftoff
Polkadot price currently faces multiple hurdles beyond $20.46, preventing its uptrend from progressing smoothly. $21.28 and $22.30 are initial blockades that could stop the rally dead in its tracks. Moreover, the double bottom formation at $17.97 and $17.14 has left a decent amount of sell-side liquidity uncollected.
There is a high chance, therefore, that market makers can push DOT to slide lower to collect these untapped liquidity pools. Hence, investors can expect the Polkadot price to correct up to 14% in the coming days.
This downswing will provide buyers with an opportunity to accumulate DOT at a discounted rate. Interested investors can position themselves long at $17.97 or $17.14 and book profits at $21.28, $22.30 and the lower limit of the supply zone, extending from $23.93 to $25.59.
DOT/USDT 4-hour chart
The bullish bias is likely to remain alive even if Polkadot price temporarily sweeps the $17.14 support level. Any six-hour candlestick close below this barrier, however, will invalidate the bullish thesis. In this case, the Polkadot price is likely to revisit the $16.12 support floor – at that level, however, buyers may well attempt another comeback.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.