- Polkadot price is floating above the $15.05 weekly support level, which suggests a bounce is probable.
- Investors can expect DOT to initiate a 46% rally that will retest the 50-day SMA at $24.86.
- A daily close below the $15.05 support barrier will invalidate the uptrend.
Polkadot price has been teetering off a crucial support level since January 22nd. This consolidation seems crucial to trigger a new upleg for DOT. As such, investors need to position themselves to take advantage of this potential upside.
Polkadot Prize to fuel his recovery
Polkadot price fell 44% between Jan 16 and Jan 24 which led to a retest of the $16.89 support level. Since then, DOT has marked this foothold multiple times and is currently consolidating over it.
Interestingly, polkadot price also has the weekly support level at $15.05, which is just below its current position, which indicates a stable base. Therefore, a resurgence in buyers could trigger an uptrend for DOT.
Tipping the scales in favor of the bulls is the little to no barrier of resistance that is in place up to the $24.18 hurdle. This development suggests that a 42% surge in the polkadot price could be due. In some cases, however, the uptrend could extend to retest the 50-day simple moving average at $24.86, bringing the overall gain to 46%.
Investors can go long on the retest of $16.89 or $15.05 and book gains at $24.18 or the 50-day SMA at $24.86.
DOT/USDT 1-day chart
While things appear bullish for Polkadot price, a failure of the bulls to consolidate around $15.05 could be problematic. A breakdown of this barrier could lead to a retest of the demand zone, which extends from $10.37 to $12.93.
A daily candlestick that closes below this barrier will create a lower low, invalidating the bullish thesis. This situation could cause Polkadot price to drop as low as $7.
