Polkadot (DOT) price It has been trading close to a crucial support level as of January 22. Consolidation in price seems to be critical for DOT to trigger a new uptrend. Therefore, it is critical for investors to invest with a good strategy to take advantage of this potential rise.
Polkadot (DOT) The price slumped 44% between January 16 and January 24, resulting in a retest of the $16.89 support level. Since then, DOT has demonstrated this support many times and continues to consolidate on this critical support at this time.
Interestingly, Polkadot price also has a weekly support at $15.05, just below its current position, indicating a stable footing. Therefore, a rebound of buyers could start an uptrend for the DOT.
There is little resistance present up to $24.18 resistance to tip the points in favor of the bulls. This development indicates that Polkadot price may experience a 42% increase. However, in some cases, the uptrend could retest the 50-day Simple Moving Average at $24.86, bringing the overall gain to 46%.
On retest, traders can open a long position at $16.89 or $15.05 and take a profit at $24.18 or the 50-day SMA at $24.86.
While things are looking upbeat for Polkadot price, it could be problematic if the bulls fail to converge around $15.05 from the end. Breaking this barrier could lead to a retest of the demand zone from $10.37 to $12.93.
A daily candlestick close below this barrier will invalidate the bullish argument and create a lower low. This situation, DOT priceIt can cause the price to drop as low as $7.
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.