Why Polkadot price could re-route north towards $8.60

Polkadot price has lost 30% of its market value this month.
DOT price is still within bounds of bullish support on the Relative Strength Index.
Invalidation of the bullish thesis is a breach below $5.

Polkadot price could witness a bullish retracement in the coming days targeting the mid $8 zone.

Polkadot price could rebound

Polkadot price continues to lose ground as the bears suppress prices during the final trading week of August. Since August 12, the Ethereum-based virtual reality token has fallen 30%. Despite the bearish control, traders should consider keeping the DOT price on their radar for a profitable opportunity in the coming days.

Polkadot price currently auctions at $7.23. The steep decline was strong enough to breach both the 8- & 21- day simple moving averages. Although the bears have had full control of the DOT price throughout the summer, a profitable retracement into the mid $8 zone could occur in the coming days. The sparse volume accompanied by the current RSI reading confirms that the bears may be loosening their grip.

DOT/USDT 1-Day Chart

Using the Average True Range indicator, invalidation of the bearish thesis is a breach below $5. Bullish targets lie near a previous week’s congestive zone at $8.60. This wider validation should help avoid any last-minute liquidity hunts before August ends.

In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market - FXStreet Team

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