Polkadot price has been on a downtrend since its initial leg up reached a local top on February 8. On February 19, DOT swept below one of the two crucial support levels to collect liquidity, suggesting that an uptrend is likely.
Polkadot price retraced 24% from February 8 and sliced through the $19.22 support level, and made its way for the sell-stop liquidity resting below the $17.97 platform. This purging of liquidity often follows a surge in price.
Therefore, investors can expect DOT to trigger an uptrend to retest the recently flipped hurdles at $17.97 and $21.20. Clearing these levels will allow Polkadot price to tag the $22.65 barrier, bringing the total ascent to 25%.
In a highly bullish case, DOT could extend higher and revisit the four-hour supply zone, extending from $23.93 to $25.59. This move, however, would bring the total gain to 32%.
An alternative scenario of how this uptrend could play out is after Polkadot price digs deeper and collects another set of sell-stops resting below the $17.14 barrier.
While things are looking up for Polkadot price, a four-hour candlestick close below $17.15 will create a lower low and invalidate the bullish thesis. In this situation, panicking holders might drive Polkadot price to crash lower and tag the $16.12 barrier. Here, sidelined buyers might enter the market and give the uptrend another go.
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