- The Polkadot price is hovering just above the 70.5% retracement level at $ 23.56.
- The recent breakout of a falling trendline suggests that DOT could retest USD 30.
- A daily candlestick closing price below USD 22.50 will invalidate the bullish thesis.
Polkadot price is trading above key reversal zones on a higher timeframe, indicating decreasing downward pressure. However, on a lower timeframe, DOT recently broke a critical resistance barrier, which revealed its intention to move up.
The Polkadot Price is aiming for a higher high
Polkadot price has been trading below a bear trend line since November 30th. Several attempts to break this trendline failed until December 20th, when DOT produced a four hour candlestick close above it.
This development was followed by a rapid rise of 4% until the Polkadot price is currently trading at $ 25.16. Investors need to be aware that the DOT may slide down and retest the 70.5% retracement level at $ 23.56. In some cases, the altcoin could slide down to amass the liquidity that rests below $ 22.50.
A reversal at either of these levels is expected, however. An increase in buying pressure will push DOT to the immediate barrier at $ 27.36, up 9% from its current position. However, the short-term upward trend is likely to hit a cap of $ 30, an 18% increase.
In a strongly bullish case, the Polkadot price could reach the 50% retracement level of $ 32.73 to fill the underlying fair value gap.
DOT / USDT 4 hour chart
On the other hand, if the polkadot price does not hold above the support level of USD 22.50 and produce a daily close below that, the bullish thesis will be invalidated. When this happens, DOT will crawl down to retest the 79% retracement level at $ 19.76 where buyers will see another rally.