By Nathan Ferguson
- DOT price might see a swift upswing as the token nears the demand zone at $10.37 – $15.66.
- A rebound from this barrier might catalyze a 25% upswing to $19.75 before extending to $20.
- Polkadot producing a daily candle close beneath $10.37 will cancel DOT’s bullish thesis.
Polkadot (DOT) saw steady downward movements since 2021 November and has no turnaround signs. However, the alternative token sees hope as the crypto wavers around a stable support floor. Let us dig dip.
Polkadot Attempts Upside Recovery
Polkadot’s price lost 74% from its record peaks and currently hover beyond the 3-day demand territory, stretching between $10.37 and $15.66. The 50-day SMA might be the reason for the latest downswing by Polkadot.
Every slight upward move by Polkadot price encountered rejection at 50-day Simple Moving Average since 27 December 2021. The latest rally saw a reversal after approaching this obstacle on 1 March. The resulting downswings might push Polkadot to retest the mentioned demand zone.
A rebound from this barrier is critical in triggering an upside for DOT price. Interested market players can execute long positions at $15.66 and cover near the 50-day Simple Moving Average again, around $19.75. However, the alternative coin might extend to hit $20. Higher bullish aspirations will trigger an upward to $22.23, pushing the overall upsurge to 41% from 25%.
Though things appear upside for DOT price, a 24hr candle close under $10.37 will violate the 3-day demand territory and print a lower low. Such actions will cancel the bullish narrative and welcome a bearish regime. Such scenarios will see Polkadot sliding lower to retest $10.09 support floor or barrier at $8.31. Buyers can kick-start another recovery at this level.
For now, Polkadot contemplates a 25% surge as the 50-day Simple Moving Average continues to subdue the alternative coin. However, a daily candle close beneath $10.37 will ruin the token’s bullish thesis. Polkadot price actions will likely mimic broad market trends.
While publishing this blog, the global crypto market capitalization stood at 41.84, following a 3.40% overnight drop. However, analysts believe the crypto will experience bullish actions in the coming days or weeks.