This is what traders should consider before trading Polkadot

Polkadot price continues to produce lower highs and equal lows since May 16, indicating coiling up.
As DOT approaches the end of this squeeze, a volatile move to $10 seems likely.
A four-hour candlestick close below $8.51 will invalidate the bullish thesis and potentially trigger further losses.

Polkadot price vies to breakout and rally higher but there are many blockades sprinkled in its path. Due to a tight consolidation, a volatile move could potentially shatter these hurdles and propel DOT to reach its short-term target.

Polkadot price contemplates a rally

Polkadot price began its consolidation on May 13 and has produced lower highs since then. During this time, DOT has stabilized around the $9.20 support level with brief sweeps below it. Going forward investors can expect this consolidation between the $9.20 and $8.51 to continue.

However, a swift recovery above $9.20 and the declining trend line will signal a bullish breakout. This move will confirm a resurgence of buyers. In such a case, the sidelined buyers could step in and trigger a run-up to $0.37, which is a higher time frame resistance barrier.

In some cases, depending on the volatility of the move, DOT could sweep the May 31 swing high at $10.78. If the buying pressure continues to build up, Polkadot price could extend the up-move to $11.98.

DOT/USDT 4-hour chart

While Polkadot price looks relatively bullish, rejection at $9.20 could dent the bulls’ plan. If DOT produces a four-hour candlestick below $8.51, however, it will create a lower low and invalidate the bullish thesis for DOT altogether. In such a case, Polkadot price could crash lower and retest the $7.1 support level.

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