- Polkadot price is back in favor of the bulls after entries at $29.12
- DOT price action needs to stay above $31.61, or at least close above, to attract fresh buyers into the rally.
- With risk-on returning to the stock markets, expect a favorable tailwind to help bulls bring Polkadot price action back to $37.03.
Polkadot (DOT) price bounced off two crucial technical levels on Monday, and bulls in DOT were able to regain control of the $31.61 level. As the global equity markets are turning back to risk-on, expect this to act as a tailwind for DOT price action and help lift the price to $37.03. Once above there, buyers will face a lot of resistance, and bulls will start to lock in profits.
Bulls can be rewarded 17% upside if they can close DOT price action above $31.61 this week
Polkadot bulls had a nervous day yesterday with DOT price action almost completely retracing the breakout move from October 1. But it offered a perfect entry with the bounce off $29.12 and the 55-day Simple Moving Average (SMA) at that same level. Bulls now have to defend $31.61 to keep the momentum going and attract new buyers into the rally.
DOT price holds 17% of upside potential in case bulls can hold $31.61. With not much in the way, a retest back to $37.03 looks to be the only possible outcome as Polkadot bulls are helped by favorable tailwinds emerging from global markets with a recovery from inflation and stagflation worries.
DOT/USD daily chart
Expect around $37.03 for bulls to face a lot of resistance. Both the monthly R1 resistance levels are around that area, between $37 and $38. With failed and faded attempts last month, expect these levels to be seen as ideal profit-taking levels for buyers in DOT.
Should markets roll over and turn back to red figures, expect a break of $29.12 to the downside in DOT. That yellow ascending trend line will be tested and broken as well, with prices dropping further toward $27.23.
Like this article? Help us with some feedback by answering this survey:
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.