- DOT/USDT trades around $15.8.
- Polkadot set a new yearly high at $16.
- Clear support around $10.5 is yet to be tested.
Polkadot currently trades at $15.8 and has a market cap of $13.6 billion. DOT has moved by 8.8 percent during the past 24 hours with a volume of $6 billion.
DOT/USD made an incredible move earlier this week as a strong bullish momentum took the market from $7 to the current high of $15.8. DOT is still heavily extended from the previous low. Therefore, more downside is needed before the market can offer good risk/reward.
Cryptocurrency heat map by Coin360
Polkadot Price Prediction: DOT continues upward motion
Today, DOT/USD opened at $13.19 after rejection yesterday, which caused a strong move to the downside. After the previous yearly high of $15.06 was broken earlier, DOT has continued moving higher as it looks to test $16.
The analyst predicts the $10 to $11 area of support to be tested next week. As mentioned in the previous price prediction, resistance turned support around $10.5 and the 61.8 Fibonacci retracement should still provide interest for a retest around the $10 to $11 area.
Both the 100 and 50 period moving averages, seen as a blue and red line on the chart, are also located around this same area of support.
Polkadot price movement in the last 24 hours
The price of Polkadot has increased by 13 percent over the past 24 hours. The price currently trades just above the previous yearly high of $15.06.
The 24-hour low is at $11.85, while the 24-hour high is at $16. According to the Polkadot price prediction, This indicates that DOT/USD still has not lost its bullish momentum and excessive volatility. We can expect further attempts to move higher in the upcoming hours.
After Polkadot set the $15 high yesterday, the price did move lower for most of the day. As previously mentioned, the area around $10.5 was the one to watch for potential support. However, it was not reached as a clear rejection was made around the $12.0 to $12.50 area.
Polkadot price chart by TradingView
DOT/USD 4-hour chart – final upward movement before a retrace towards $10.5?
However, since Polkadot has moved by around 125 percent from the previous major low of $7 to the high of $16, a more substantial retracement is required before a trade can be considered. Right now, the risk of a sharp reversal to the downside is very high.
The analyst expects that DOT will show another rejection later today, which will likely reverse the price action in a more substantial way in preparation for a much longer retracement.
Polkadot Price Prediction: Conclusion
DOT/USD should reverse again in the upcoming 24 hours as the market has extended too far from the previous major swing low of $7. The retracement seen yesterday will likely not be sufficient to set up a solid base for the next major upswing.
DOT currently continues to set yearly highs anew. However, the analyst predicts that the market will reverse to the downside over the weekend.
The $10 to $11 mark still offers very strong support and should be kept as a target for considering the next entry. Entry from this support area would provide a very good risk/reward ratio and several confluences of support such as resistance around $10.5, 61.8 percent Fibonacci retracement, as well as the area between 50 and 100 period moving averages.
For now, the Polkadot price prediction shows it is best to remain neutral and wait for the price action to settle.
Additionally, read more news on Polkadot
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