Altcoin attempts to break out to the north

  • Course (DOT): $10.63 (previous week: $11.01)
  • Resistances/Goals: $11.79, $13.28, $14.34, $15.85, $17.89, $20.05/$20.62, $22.34, $23.76, $25.54, 27 $.96, $31.46
  • Supports: $10.37, $9.07, $7.90, $7.31/$7.20, $6.12, $4.59, $3.90

Polka Dot Recap:

  • Polkadot’s price, along with other major cryptocurrencies such as Solana (SOL), Cardano (ADA) and Avalanche (AVAX), has slid significantly south over the past few months, marking a new 52-week low on May 12 this year at 7, $31. The DOT price thus reached the targeted maximum bearish price target from the last price analysis on February 21, almost to the cent.
  • Starting from this strong support area, Polkadot initiated a countermovement, which led the DOT price to the 23 Fibonacci retracement at USD 11.79.
  • Although there was another price correction in the direction of USD 9.07 in the following days, the bulls are currently trying to lift the DOT price again at the end of the day above the resistance at USD 10.38 in the direction of the previous week’s high.
  • Looking at the indicators, the weekly chart shows an oversold condition. In the daily chart, the MACD indicator also shows a fresh buy signal. So there seems to be a chance of Polkadot bottoming out.
  • However, as long as the DOT price is below the supertrend at USD 13.28, a retest of the historical low and even new annual lows can be expected at any time if the overall market corrects again.

Bullish Variant (Polkadot)

  • The DOT price is copying competitors like Avalanche and trying to initiate a reversal movement in the last few trading days.
  • If the DOT price quickly stabilizes above USD 10.38 and jumps again towards USD 11.79, a first directional decision can be expected.
  • If Polkadot dynamically breaks above this price level at the daily closing price, new price targets at USD 13.28 and USD 14.34 are activated. In this zone there are two strong resistances with the Supertrend and the EMA50 (orange).
  • If this resist is recaptured without any notable setbacks, the chart picture will brighten up again slightly and the trailing edge at USD 15.85 should be targeted. The 38 Fibonacci retracement can also be found at this resistance level. The bulls are likely to struggle here at the first attempt.

More upside imaginable

  • If, on the other hand, the bulls also dynamically break through this resistance level in the coming trading weeks, a price jump into the turquoise zone should be planned. Two other massive resistances run between USD 17.89 and USD 20.62 with the 50 Fibonacci retracement and the EMA200 (blue). The relative weakness in the crypto market makes a price bounce likely.
  • As long as Polkadot subsequently stabilizes above USD 15.85, a price jump back to the yellow resist area between USD 22.34 and USD 23.76 is conceivable in the medium term. The MA200 (green) is currently also running here. In addition, the DOT price in this zone has failed several times in the past few months.
  • If the buyers have enough purchasing power to break through this zone, investors will focus on the maximum price targets for the coming period of USD 25.54 (Golden Pocket) and USD 27.96. For the time being, a price rise above the 61 Fibonacci retracement is not to be expected, the sell-off since the beginning of the year has been too strong.

Bearish Variant (Polkadot)

  • The bears hit the maximum price target on the downside before the bulls initiated an initial counterstrike.
  • Although Polkadot has increasingly moved north from its low for the year in the last few trading days, as long as the DOT price cannot sustainably break through the resistance at USD 11.79, another sell-off can be expected at any time.
  • Even a retest of the zone around USD 13.28 is unproblematic from a seller’s point of view. If Polkadot turns south again here at the latest and subsequently breaks through the supports at USD 10.38 and USD 9.07, the purple support zone will come into focus again. Once again, the bulls will have to do everything in their power to defend the $9.07 area as of the daily close.

Significantly lower prices to be expected

  • If this stabilization fails and Polkadot marks a new low, the bears should target the USD 6.12 mark. This price level marks the old breakout level of December 28, 2020. A countermove to the north is to be planned here.
  • However, if this support is also given up in the course of an ongoing overall market correction, Polkadot is likely to lose further ground and break away towards the support at USD 4.59. This price mark has acted as resistance several times in the past and later as support.
  • In the event of a prolonged bear winter, a relapse to around USD 3.90 cannot be ruled out. From the current chart perspective, this price mark represents the maximum bearish price target for the coming trading months.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 0.95.

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