Polkadot Recovers, bulls Targeting $10 but Will Bears Flow Back?
The Polkadot price is steady after three days of turbulence. A few dollars away from the coin’s 2021 high, buyers are still in the driving seat despite recent bumps.
As of writing (Jan 12), there were hints of bears from price action and candlestick arrangements in lower time frames. Nonetheless, the DOT price is firm on the last day of trading, adding five percent versus the greenback.
On a top-down analysis, though, bears are pressing lower. For instance, the coin is down double digits versus the BTC, sliding 10 percent, and shedding a ballpark nine percent against USD and BTC during the same time frame.
Recovery of the last day is with high trading volumes, as coin trackers show. In the past 24 hours, the DOT/USD appreciation is with relatively high participation that expanded nine percent to $1.528 billion (178 million DOT).
Polkadot (DOT) Price Overview
Overly, the path of least resistance is northwards.
In a bullish breakout pattern, the DOT/USDT price has supports at $6 and $10.5, respectively.
Notably, supporting current price action is the sharp expansion of prices above November 2020 highs in late December.
This was with high participation. The DOT price is bullish and in range mode in lower time frames despite the contraction from late last week.
The short-term trend is dependent on the breakout direction. A close above $10.5 may fan demand, driving DOT prices to new 2021 highs.
On the flip side, a dump down below $6 and November 2020 highs may spark a selloff that may push the DOT/USDT back to $3.5 or Q3 and 4 2020 lows.
DOT Market Movers
Therefore, whether the current state of price action is an accumulation or a distribution depends on how prices react at these key price points.
In all, Polkadot has been successful in attracting development. More projects are building. Its security is unparalleled and is one of the most actively staked Proof-of-Stake networks, only trailing Cardano.
By the close of 2020, 68 projects had received funding from the Kusama and Polkadot treasuries. This was a milestone, considering the project launched in late March 2020.
To spur DeFi, developers plan to integrate MetaMask. This is a non-custodial browser wallet that’s key in enabling decentralized finance.
We will integrate @metamask_io on Polkadot.js soon!
Ethereum users can make a @Polkadot’s address from their Ethereum key 🔑
Stay tuned!! pic.twitter.com/q0BNWjvUlN
— Astar Network – Multichain Smart Contract Hub (@AstarNetwork) January 8, 2021
Also, Polkadot is getting a rebranding from Koto. The design revamp is on-chain and will allow community members to decide on key aspects of the rebrand.
Polkadot Price Prediction
As of writing (Jan 12), the DOT price is trading at $8.5.
Despite the last three days’ pullback, bulls are in command as long as prices oscillate above key support levels.
It appears Jan 11 losses are climactic. With a long lower wick suggesting buy pressure in lower time frames and a lack of follow-through on Jan 12, bulls could find reprieve.
At spot rates, the DOT/USDT is finding support within a buy wall marked by the 50 and 61.8 percent Fibonacci retracement zone. This is around $7 and $7.5.
On the lower end, the main support is at $6—Nov 2020 highs.
For buy trend continuation, the DOT price must reverse Jan 11 losses with equally high trading volumes.
In this case, the first buy target will be Jan 2021 highs of around $10.5. Further gains could see DOT soar to $14, the 1.68 percent Fibonacci extension level of the same trade range.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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