Last week saw Polakadot through its correction phase after returning approximately 75% in five weeks. Later in the mid-week, it found support and rebounded significantly to a crucial resistance level for a breakout.
The past week has been so impressive for DOT, increasing by over 17% to test the crucial $7.4 resistance level during yesterday’s surge. Unfortunately, this resistance level was rejected as the price dropped slightly to $7.3.
It currently looks indecisive due to low buying pressure. The above resistance level seems to be holding a potential breakout – posing a lot of threat to the buyers.
Meanwhile, the supply zone – marked orange on the daily chart – serves as a negotiating area for the buyers. We may see a small consolidation around this price zones ($7 – $7.4) on a lower time frame before rallying higher.
A successful negotiation in that area could sprout another surge in volatility to keep buyers on track. At least a 25% profit is expected from this potential price rally. On the other hand, the price fall below the $7 level if the buyers fail to mount pressure.
While anticipating the next price movement, Polkadot is considered bullish as it remains in the hands of the bulls. As per CoinMarketCap metrics, the price has increased by 9% in the past 24 hours.
Polkadot’s Key Levels To Watch Out For
The closest price range for a breakout is $7.7 and $8. The higher resistance level to pay attention to is $8.6, followed by $9, which puts the assets at the expected profits mentioned earlier.
A decrease below the supply zone could trigger a pullback at the $6.4 level. If the pullback level fails to hold as support, it will navigate the $6 psychological support level for a rebound. Lower support levels to consider are $5.6 and $5.
Key Resistance Levels: $8, $8.6, $9
Key Support Levels: $6.4, $6, $5.6
- Spot Price: $7.3
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: skorzewiak/123RF // Image Effects by Colorcinch
