- DOT price saw reversals after hitting the weekly supply territory between $22.37 and $28.47.
- Enthusiasts should expect Polkadot to decline the support of $17.12 to create a base for the upcoming leg up.
- Breaching the support floor at $15.05 will cancel Polkadot’s long-term bullish case and catalyze further declines.
Polkadot (DOT) price appears at a local high, indicating a potential reversal. The correction will be essential for bulls to gain the strength to support a new upward move. However, the altcoin might shift to bearish if sellers dominate, leading to a steep decline.
DOT Price Requires a Break
DOT price saw a 35% climb from 31 January to 8 February, forming a swing peak near $23.19. Unfortunately, the uptrend pierced the $22.37 – $28.47 weekly supply region, absorbing the buying momentum slowing DOT’s advance.
As market players continue booking profits, DOT has a higher chance of retracing towards the closest support area at $17.71, revealing a 17% fall. With that, interested people may enter a short position around the current zone – $21.35 to profit from the downswing to $17.71.
Market players may take profits neat the support barrier of $17.71, where buyers can accumulate Polkadot at discounted prices. Alternatively, traders may wait to execute long positions near $17.71 and take profits near $22.27, then the weekly resistance zone near $24.18. That means the impeding downward move is a lucrative opportunity for sellers and buyers.
Nevertheless, a preemptive higher push by Polkadot for a daily candle close beyond $24.18 will annul the explained short notion. That will mean willingness by Polkadot buyers to take the alt higher. However, only a 24hr close beyond $28.68 will indicate an optimistic outlook in the mid-term. That way, the altcoin can climb towards the hurdle of around $1.33.
However, the crypto industry witnessed corrections after the latest upswings. For now, the global crypto market capitalization sees downtrends, reflecting the broad downbeat mode at $1.72 trillion.
Also, Bitcoin retreated after an inching high towards $45,000. While publishing this blog, BTC changes hands near $43,702.73. Such developments support Polkadot’s awaited plunge.
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