- Polkadot price might slide below $37.55 to collect liquidity resting around the $35.47 support level.
- This downswing will provide sidelined buyers an opportunity to accumulate DOT before embarking on a 30% upswing to $45.72.
- A daily close below $35.47 will invalidate the bullish thesis and likely trigger a descent.
Polkadot price looks to be showing a slightly bullish reaction as it nears a support floor. This uptick in buying pressure could be a lure as DOT could slide lower in search of liquidity. Therefore, investors need to be aware of a potential wick to the downside.
Polkadot price prepares for a move higher
Polkadot price has been on a downswing for roughly three weeks and shows signs of reversal as it hovers above $37.55. While the 30% correction seems done, there is a small chance DOT might dive lower to collect the liquidity resting below the $37.55 support level and fill the fair value gap at $35.47.
This move will provide the buyers with a perfect opportunity to accumulate DOT at a discount. Regardless of where it drops to, investors can expect Polkadot price to kick-start its upswing toward $45.72 thereafter.
This upswing would constitute a 30% climb from $35.47 or 21% from $37.55. In some cases, DOT could extend to the $47.91 and $49.71 resistance barriers.
DOT/USDT 4-hour chart
While things are looking up for Polkadot price, a breakdown of the $35.47 support floor will indicate a weakness among buyers and increased selling pressure. This move will also invalidate the bullish thesis.
In this scenario, Polkadot price will retest the $34.27 support level, where it could give the rebound another go.
Polkadot price gathers steam for 25% advance as DOT forms a bottom
- Polkadot price seems to be coming off its local bottom at $24.84 as recovery kick-starts.
- Investors can expect DOT to continue its ascent and rally 25% to retest $36.84.
- A breakdown of the $24.84 swing low will invalidate the bullish thesis.
Polkadot price has set up a swing high after the recent tumble and has recently confirmed the start of an uptrend. As the crypto markets begin to recover, DOT may reveal an optimistic outlook shortly.
Polkadot price prepares a higher high
Polkadot price set up a swing low at $24.84 after the recent flash crash on December 4. In less than three days, DOT set up a higher low, suggesting increased buying power. Moreover, the altcoin has also set up a higher high on December 7, indicating that an uptrend has begun.
Going forward, if this bullish momentum continues, investors can expect Polkadot price to rally 12% from its current position at $29.52 to $35.05. This move will face resistance at the top, but DOT could extend to the next level at $36.84 and collect the liquidity resting above it if bids continue to pile up.
In total, the run-up would constitute a 25% ascent and set the stage for an even advanced recovery where Polkadot price could aim at retesting its all-time high of $55.09.
DOT/USDT 4-hour chart
On the other hand, if Polkadot price fails to keep its uptrend intact, it will likely head lower and create a lower low below the recent swing point at $28.02. While this development is not conducive for an uptrend, investors should remain wary.
If the selling pressure increases, DOT could revisit the $24.84 support level. A breakdown of this barrier will create a lower low and invalidate the bullish thesis for Polkadot price.
Polkadot Forecast DOT/USD December 8, 2021
DOT/USD are trading at 29.18 and continue to move within the correction and bearish channel. Moving averages indicate a short-term bullish trend for Polkadot. Prices went up from the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the rise from the current levels. At the moment, we should expect an attempt to develop the growth in the value of a digital asset and a test of the resistance level near the 32.05 area. Where can we expect a rebound down again and the continuation of the fall in the Polkadot rate with a potential target below the level of 24.05.
Polkadot Forecast DOT/USD December 8, 2021
In favor of reducing the DOT/USD quotes, a test of the trend line on the relative strength index (RSI) will come out. The second signal will be a rebound from the upper border of the descending channel. Cancellation of the coin falling option will be a strong increase in the value of the asset and a breakdown of the 35.55 area. This will indicate a breakdown of the resistance area and a continued rise in the cryptocurrency rate with a potential target above the level of 42.05. With the breakdown of the support area and closing of quotations below the level of 27.05, we should expect confirmation of the development of the bearish trend for Polkadot.
Polkadot Forecast DOT/USD December 8, 2021 suggests an attempt to correct and test the resistance area near the level of 32.05. Where can we expect a rebound and the continuation of the fall in DOT/USD to the area below the level of 24.05. An additional signal in favor of reducing Polkadot will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and a breakdown of the 35.55 area. This will indicate a continued rise in the cryptocurrency with a target above the level of 42.05.
Polkadot price to return to $40 if near-term support holds
- Polkadot price lost nearly 30% of its value during the Saturday flash crash.
- A strong recovery indicates Polkdaot may be positioned for another leg higher.
- Downside risks remain, and risks must be monitored.
Polkadot price has substantially recovered since hitting a low of $23.95. A return above the $30 level gives buyers and long-term hodlers significant psychological support that Polkadot may, again, move higher.
Polkadot price must close above $32 before it can test $40
Polkadot price faces near-term resistance against the 38.2% Fibonacci retracement at $31.08 and the Tenkan-Sen at $31.66. It will need to close above both levels to prevent any near-term continuation of selling. Ideally, there would be enough momentum to close above the Kijun-Sen at $36, but that may not be possible.
After Saturday’s flash crash, an unfortunate event is the conversion of the Relative Strength Index from bull market conditions to bear market conditions. This does not mean or imply that Polkadot is entering into a bear market, but that momentum has dwindled enough to generate some warnings.
Despite the conversion to bear market conditions in the Relative Strength Index, there are some bullish signs. First, there is a regular bullish divergence between the candlestick chart and the Composite Index – hinting at a bullish reversal. Additionally, the Optex Bands oscillator is moving above and out of the extreme oversold levels it has been in.
DOT/USDT Daily Ichimoku Chart
Considering the present position of the Relative Strength Index, Composite Index, and Optex Bands, a breakout above $32 would likely have enough momentum to see Polkadot price test the Senkou Span B at $40 as resistance.
Failure to close above the Tenkan-Sen could see Polkadot return to the 50% Fibonacci retracement at $26.