- Polkadot price hints at retracement to $20.34 after 37% rally.
- Due to the bulls exhaustion, DOT could pull back before embarking on a 55% upswing.
- A daily candlestick close below $18.65 will invalidate the bullish thesis.
Polkadot price shows signs of continuing the uptrend as seen in the 2020 fractal. If history repeats itself, DOT and its holders are likely to enjoy a prosperous future.
Polkadot price at an inflection point
Polkadot price set a triple bottom setup at $3.91 for roughly 44 days in September 2020. This formation was followed by an explosive move that pushed DOT to its all-time high at $50. The nuances before and after the triple bottom formation seem to be repeating again, suggesting a fractal formation.
Since the triple bottom setup on March 6, DOT has rallied 40% and is now facing the $22.45 resistance barrier. A minor retracement to the immediate support level at $20.34 seems likely considering the exponential run-up over the past two weeks.
This pullback will allow the bulls to recuperate, triggering another leg up for Polkadot price. This move, however, will aim for a retest of the $31.40 resistance barrier, bringing the total gain to 55%.
In an extreme bullish run, the Polkadot price could fail to retrace and directly flip the $22.45 hurdle. As long as DOT manages to sustain above this newly formed support level, the uptrend scenario will remain intact and suggest the possibility of a retest to $31.40.
DOT/USDT 1-day chart
While the fractal seems to be playing out well for the Polkadot price, a reversal in Bitcoin’s directional bias could negatively impact DOT bulls. In such a case, a daily candlestick close below $18.65 will invalidate the bullish thesis for the Polkadot price. By undoing the recent gains, the downswing could trigger a panic sell, pushing back DOT to revisit the $15.85 support level.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.