Polkadot price eyes retest of $7.5 amid increasing headwinds

  • Polkadot price shows double bottom formation at $5.95, suggesting a bottom reversal setup.
  • Investors can expect DOT to reach the $7.78 hurdle and higher levels if it can overcome the $6.85 blockade. 
  • A daily candlestick close below $5.95 will invalidate the bullish thesis.

Polkadot price hints at a bottom reversal pattern that could trigger a run-up soon. However, this outlook is far from being confirmed as DOT needs to overcome plenty of hurdles to kick-start its run-up.

Polkadot price is ready to struggle

Polkadot price crashed 38% between August 10 and September 21, which resulted in a swing low at $5.95. This development makes it the second swing low to form at the same level, indicating a double bottom.

This technical formation is a bottom reversal pattern and forecasts a shift in trend favoring the bulls. However, Polkadot price will need to reclaim the $6.85 to $11.86 range and stay in there. Once this short-term target is achieved, investors can expect DOT to move to the $7.78 hurdle, denoting a 20% run-up from the current position.

Even after this move, Polkadot price needs to overcome the $7.78 resistance level to confirm the shift in trend favoring bulls. This move will allow DOT to retest the aforementioned range’s midpoint at $9.35 and potentially extend this rally to $11.86.

DOT/USDT 1-day chart

On the other hand, if Polkadot price fails to recover above the range low at $6.85, it will indicate a lack of buying pressure. If sellers take over, investors can expect DOT to slide lower.

If Polkadot price produces a daily candlestick close below $5.95, it will create a lower low and invalidate the double bottom’s bullish potential. This development could see DOT  crash to $5.5. 


The video attached below talks about Bitcoin price and its potential outlook, which could influence Polkadot price.


This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.