- Polkadot price action is in a pullback as an attempt to $40 failed with a fade to the downside.
- Buyers took the opportunity to lock in some profit and add some new longs on DOT.
- As long as the green ascending trend line is solid, expect more upside in the coming weeks.
Polkadot (DOT) was overheating after the bear trap last week, where buyers pushed sellers out of their attempt to run price action lower. Price action came off the highs from this summer and rebounded at $31.76. With the green ascending trend line as the backbone of the summer rally still intact, expect another run higher in the coming weeks towards $45.22
Polkadot price is still in favor of the bulls
Polkadot price has had a hot summer with price action gaining over 240%. The jump higher in the last week of august pushed DOT from $24 to $35. In that week, three crucial intermediary levels got broken to the upside. In that rally, bulls had locked in some gains each time, and sellers saw their opportunity for an attempt to take over the price action in DOT. But the overhaul in the week after that resulted in a perfect bear trap. Sellers tried to push the price back to the starting point from this summer, near $11. But they got squeezed out of their attack with buyers catching the falling knife between $20 and $23 and closing last week near $36. A painful move for sellers with no stop loss.
DOT/USD weekly chart
Such a violent move in the previous week called for Polkadot to look for some ground of support where buyers, who missed the opportunity to step in the last week, we’re able to add or join the bull run. That level offered itself at $31.61, originating from May 10. DOT’s price reaction on that level resulted in a perfect bounce off that level. With new volume pouring into the bull run, the next leg is offering itself around $45.22. In the meantime, the green ascending trend line stays safely in the shadows and keeps its powder dry for when sellers try to push price action in DOT below the trend line.
Sellers will want to wait for a pullback to the trend line of the rally. If that breaks, expect sellers to flock in on that event and push the price back towards $20.51.