Last week, Polkadot’s pullback extended to a -30% drop from its all-time high at the beginning of the month at $ 55, with the support level breaking out of $ 40 and the possibility of an acceleration of the trend. bearish.
After that decline, Polkadot took off again by returning above the support level and doing a couple of consolidation sessions. Tonight, at 6:45 pm, the cryptocurrency is at $ 40.03, down -3.06%.
In the past 24 hours, Polkadot shows trading volumes increasing by more than + 45%.
Polkadot price predictions: the bearish scenario
The price of Polkadot is currently at $ 40.03 and has failed to pull back towards the $ 43 resistance area it tested unsuccessfully late yesterday evening.
As long as the cryptocurrency remains above the $ 40 support area, the bullish scenario will not yet be compromised and DOT can attempt a new upside. A possible drop beyond the support level of $ 40 would instead indicate the accentuation of the bearish pressure on the cryptocurrency, which after the Parachain boom has started to lose altitude in recent weeks.
In this limited bearish scenario, the price of Polkadot could continue to contract to the area of 37.5 / 38 dollars, as the first target, and then down to 35 dollars. The final target could be represented, in the short term, by the level of 32 dollars.
The bullish hypothesis with the $ 43 test
The bullish scenario would instead see Polkadot retry the resistance test at $ 43.
The latest attempt proved unsuccessful and sent Polkadot back towards the current price value. However, if the cryptocurrency were to manage to break this resistance, it would be possible to exploit the bullish gap for a consolidation starting from the $ 45 area and, a return to the $ 50 level is not to be excluded.
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This article was originally posted on FX Empire