Price Analysis

Polkadot Primed for a 20% Upswing, Will DOT Price Penetrate Through Pivotal Levels at $7?

Written by: Delma Wilson

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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Sep 23, 2022

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Midway through the month of June, the Polkadot (DOT) price dropped and fell below the range to hit the lower support level of $5.951. Further, a rebound broke the range of $6.854, reaching $7.78 before being rejected back to the support level at $6.854.

Previously, the prices soared past the $7.78 resistance level to reach the highs at $9.359. Later the prices fell below the $7.78 level, which had previously served as a support level but was now acting as a barrier. 

The DOT then achieved the first support level at $6.854. Prices consolidated between the support level of $6.854 and the resistance level of $7.78 for over a month before dropping the range to the lower support level of $5.951, turning the range of $6.854 into a resistance level. As a result, prices fell by 38% between August and September.

The prices initially increased to $9.359 in mid-June undergoing a bottom reversal pattern, indicating a revival of the bullish trend. To validate the trend change in favor of bulls, the DOT must surpass the $7.78 barrier. With this rise, DOT will be able to retest the $9.35 midpoint of the range mentioned above and maybe continue the uptrend to $11.86.

In contrast, a lack of purchasing pressure will be apparent if the DOT fails to rise over the range low of $6.85. Investors could anticipate a decrease in DOT if the sellers take control.

While, if the DOT produces daily candlesticks close to $5.95, it will make a lower low and invalidate the double bottom’s bullish potential. The DOT could decrease to $5.5 as a result.

The $6.85 to $11.86 range may be observed very closely as the rise beyond these levels may attract the bull while a drop could ignite a bearish trend. Investors could expect the DOT to go up to the $7.78 barrier after reaching this short-term target, representing a 20% spike from the current price.

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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