- Polkadot price is consolidating below the $35.11 resistance level.
- The MRI has flashed a sell signal, indicating a minor retracement might ensue.
- In a highly bullish case, a decisive close above $35.11 could propel DOT to $38.83 and $42.71.
Polkadot price is seeing a lack of buying pressure, which has led to a consolidation phase under a crucial resistance level. Moreover, a sell signal from the MRI indicator further limits any upside potential DOT has. Therefore, investors need to be careful around this altcoin.
Polkadot price at inflection point
Polkadot price rose 50% since August 27 but started consolidating from September 1. The coiling up could lead to a breakout in either direction but upsetting the bullish expectation is the Momentum Reversal Indicator (MRI)’s sell signal on the form of a red ‘one’ candlestick on the daily chart. This technical formation forecasts a one-to-four candlestick correction.
Therefore, investors need to be careful of this consolidation resolving with a downward breakout.
However, if the buyers manage to overcome the bearish indications, market participants expect DOT to continue its ascent to $38.83 after an 11% ascent. If such a move occurs, the run-up might extend to $42.71, constituting a 23% climb from the current position.
Beyond this resistance barrier, Polkadot price will have a chance to retest the all-time high at $50.04.
DOT/USDT 1-day chart
The bullish outlook for Polkadot price hangs by a thread, despite climbing 50% over the past week. Even if DOT manages to breach through the immediate resistance, the upswing cannot be guaranteed.
On the other hand, if Polkadot price produces a lower low below $31.38, it will invalidate the bullish thesis. In some cases, this move could trigger a 16% downswing to $26.06.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.