Finance

DOT bulls prepare for 21% charge

  • Polkadot price is currently grappling with a crucial resistance level at $17.66.
  • A decisive 6-hour candlestick close above $17.66 will confirm the start of an uptrend.
  • However, a breakdown of the $15.70 support floor will invalidate the bullish thesis.

Polkadot price experienced an extended and exponential uptrend from July 20. As the bullish momentum grew exhausted, DOT underwent a retracement which pushed it below a crucial support level.

Reclaim of the said barrier will indicate a resurgence of buyers and potentially trigger a new bull run.

Polkadot price anticipates a catalyst

Polkadot price rallied nearly 90% from July 20 to August 1, but the Momentum Reversal Indicator’s (MRI) sell signal in the form of a red ‘one’ six-hour candlestick combined with the exhaustion of the bullish momentum, created a perfect concoction that resulted in a 15% correction.

This downswing sliced through a vital support level at $17.66, flipping it into a resistance level. Therefore, a decisive close above $17.66 will indicate that the bulls are back in town, which could trigger a massive buying spree, pushing Polkadot price higher.

The $19.13 resistance level is the first barrier that the buyers will encounter. Breaching it will push DOT to $20.73, which constitutes roughly 21% higher from the current position.

DOT/USDT 6-hour chart

While the upswing narrative seems straightforward, investors need to note that the rally could begin after a retest of the $16.50 support barrier. Such a move does not negatively impact the optimistic scenario outlined above.

However, a retest leading to a breakdown of the $15.70 demand barrier will invalidate the bullish thesis. In some cases, this move might lead to a 10% downswing to $14.17.

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View more information: https://www.fxstreet.com/cryptocurrencies/news/polkadot-price-prediction-dot-bulls-prepare-for-21-charge-202108040329

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