Polkadot (DOT) Requires a Breather Before 30% Upsurge
- DOT price sweeps range peak around $19.58, indicating a possible retracement towards $16.81.
- This pullback remained essential for Polkadot to launch a 30% leg-up towards $22.
- A 4hr candlestick close under $14.04 will cancel Polkadot’s bullish thesis.
Polkadot (DOT) shows exhaustion signals after overcoming the previous swing peak. Market participants may expect the alt to correct lower before triggering a new upside move.
DOT Readies for the Next Move
Polkadot price formed a range stretching between $14.04 and $19.58, following a nearly 40% upsurge within a week. Such a move formed a boundary inside which the alt will hover in the upcoming weeks.
However, the downswing breached the 50% retracement area near $16.81 to tag the 62% retracement hurdle at $16.15 two times before catalyzing an upward move. The uptrend had DOT sweeping range peaks of $19.58, indicating a possible retracement.
For now, enthusiasts may expect DOT to retrace towards the 50% retracement zone around $16.81. Though it may be conservative to expect the correction to stop near $16.81, traders should prepare for a drop to $15.20, the 79% retracement area.
Meanwhile, the upside emerging between the 50 and 70% retracement areas might overcome the range peak at $19.58 and climb towards the 4hr demand region, stretching between $21.47 and $22.47. That would mean a 30% upsurge from $16.81 and 40% from the 415.20 mark, and DOT might pause before planning the next move.
Though the optimism shattering the 79% retracement area near $15.20 without a swift recovery will show unwillingness or weakness by buyers. Meanwhile, a 4hr candlestick close under $14.04 will erase DOT’s bullish narrative. Such an action would clear the path for Polkadot to drop towards the steady support floor at around $12.60.
Polkadot has its price sweeping the range high of $19.58, indicating a possible correction towards $16.81. The downside action is essential to catalyze a 30% upsurge towards $22.
However, bulls should control the awaited pullback as a 4hr candlestick close beneath $14.04 will annul the bullish narrative. Broad market sentiment remains vital in DOT’s upcoming directional bias.
Feel free to share your opinions in the comment area below.