Polkadot price on the verge of recovery as DOT prepares for 15% jump

By September 10, 2021Polkadot
Click here to view original web page at www.fxstreet.com
  • Polkadot is on the path to recovery after the correction at the beginning of this week.
  • Upside looks limited with a double technical resistance at $31.76.
  • Once that is cleared, buyers have an incentive to go to $37.02.

Polkadot (DOT) has not been the easiest of cryptocurrencies for buyers to look for good entry levels for a long. The buy-the-dip strategy was complicated as no fundamental entry levels offered themselves. On September 7, the price action just above the 55-day Simple Moving Average (SMA) looked nice, but not many buyers will have dared to catch a falling knife around $22.

Polkadot buyers can plant their flag back above $32.50

The false break at $29.12 on September 8 will probably have tricked a few buyers into a bull trap, and they never saw any positive P&L on their entry that day. Only the genuinely patient buyers with a strict plan will have had the guts and wide stop to stay in the trade and lived to die another day. Experienced traders will have waited another day for the dust to settle further and will have loved the entry or fade-in between the monthly pivot at $26.64 and $27.22. Price action bounced off perfectly from those levels.

The body of the candle got supported by the 200-day SMA at $27.81. This gave buyers three solid reasons to get in as price action looked healthy and more logical after the swings from previous days.

Buyers already tried to reclaim the $31.76 barrier and the green ascending trend line from July 20, but they failed at their first attempt. A second attempt looks to be unfolding today with price action firmly above $29.12, and during the Asian session an attack above $31.76 already occurred. It is now vital for DOT to be able to close the week above there.

DOT/USD daily chart

DOT/USD daily chart

Expect a possible retest at $29.12. That level should hold within the uptrend. Favorable tailwinds from global markets returning to risk-on should help additional buyers to step into DOT. Once price action can jump above $32.50, expect further upside. By the end of the US session, a close above there would mean further upside next week toward a retest of $37.02.

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.

Cryptos feed

All Today's Crypto News In One Place