polkadot priceThe coin has been in a downtrend since its initial rally reached a local high on Feb. On February 19, it broke below one of two key support levels to gather liquidity, indicating that an uptrend is likely.
Polkadot (DOT) The price tumbled 24% from Feb. 8 and broke the $19.22 support level and made its way towards sell-stop liquidity standing below the $17.97 platform. This liquidity liquidation usually follows the price increase.
Therefore, it would be highly beneficial for traders to wait for the DOT to trigger an uptrend to retest the recently reversed hurdles at $17.97 and $21.20, respectively. Breaking these levels will allow Polkadot price to tag the $22.65 barrier, bringing the overall rise to 25%.
In a strong bullish case, DOT price could rise further and extend the four-hour supply zone from $23.93 to $25.59. However, this move will bring the total earnings to 32%.
An alternative scenario for how this uptrend could unfold is after Polkadot price digs deeper and collects another set of sell-stops holding below the $17.14 barrier.
While things are in Polkadot price discovery, a four-hour candlestick will form a low low near $17.15 and invalidate the bullish thesis. In this case, panic sellers could push Polkadot price lower and approach the $16.12 barrier. At this level, sideline buyers can enter the market and give the uptrend another chance.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.