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DOT seeks to repeat $7.5 amid growing headwinds

DOT seeks to repeat $7.5 amid growing headwinds

  • Polkadot price has a double bottom formation at $5.95, suggesting a bullish reversal setup.
  • Investors can expect DOT to reach the $7.78 barrier and above if it manages to break above the $6.85 resistance.
  • A daily close below $5.95 will invalidate the bullish thesis.

Polkadot’s price suggests a bullish reversal pattern that could trigger a rally soon. However, this view is far from confirmed, since DOT has to overcome many obstacles to begin its rise.

Polkadot is ready to fight

Polkadot’s price fell 38% between August 10 and September 21, making it a low of $5.95. This development makes it the second low to form at the same level, indicating a double bottom.

This technical formation is a reversal pattern to the upside and predicts a trend reversal in favor of the bulls. However, the price of the Polkadot will need to recover the $6.85 to $11.86 range and stay there. Once this short-term target is achieved, investors can expect DOT to move to the $7.78 barrier, which is a 20% upside from the current position.

Even after this move, the price of Polkadot must break above the level of durability $7.78 to confirm the trend reversal in favor of the bulls. This move will enable DOT to retest the midpoint of the aforementioned range at $9.35 and this may extend to $11.86.

DOT/USD daily chart

1 day DOT/USDT chart

On the other hand, if Polkadot’s price fails to break above the low range at $6.85, it will indicate a lack of buying pressure. If sellers take control, investors can expect DOT to slide lower.

If Polkadot price produces a daily close below $5.95, it will form a lower low and invalidate the potential of the double bottom. This could cause DOT to drop to $5.5.

Note: The video below talks about the price of Bitcoin and the possible outlook, which could affect the price of Polkadot.

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