Polkadot is a beast of a crypto project- at least according to supporters.
And for traders to truly clip the market and profit from DOT/USDT price fluctuations, they must be prepared.
Polkadot Market Performance and Price Status
At least most were this week. For the better part of the last ten days or so, the trading community across the board had been expecting DOT prices to tear higher—on paper.
Given the projections by optimists, the coin would ease above recent November highs to $75 or better by the end of the year. The problem is: that is not exactly what’s happening. A simple glance at the daily chart and it is clear that DOT buyers are struggling.
On the DOT/USDT price chart, there is a contrarian pattern that’s fading the expectations of Polkadot traders. Technically, users would have been wise to follow the chart and not get whipped by emotions, falling prey to permabulls talk.
For days now, the deleveraging across the board emitted a powerful pull of gravity, unmistakably pulling down asset prices across the board.
Polkadot wasn’t an exception.
Visible from the daily chart, the Polkadot cool-off saw the price disintegrate, retracing from all-time highs of around $55 to spot levels below the primary support line marked by the 20-day moving average.
There could be hope for Polkadot prices from a fundamental perspective since Polkadot Parachain slot auctions are now live.
From a technical angle, buyers seem to be sealing the plug of November 10, containing prices from the consolidation of November 11.
Even still, sellers are in a commanding position, and DOT prices may tank if bears press lower, forcing the coin below $40.
Polkadot Ready to $87
On Trading View, one trader is convinced the DOT/USDT price action skew to favor buyers.
As a result, every low—even at spot rates—presents loading opportunities for swing traders.
Per the analyst’s estimation, the coin would resume the uptrend, close above $55—the November 2021 highs and DOT all-time highs—before ripping higher to $87.
From spot levels, this presents a new 100 percent move to the upside—a perfect opportunity for swing traders.
The trader’s price target at $87 also coincides with the 1.618 Fibonacci extension level of the recent swing high low.
Nonetheless, should bears of November 10 press lower, crashing below $40, further losses below $30 invalidates the uptrend, shifting price action to favor sellers.
Bitcoin Determines How DOT/USDT Trends
On Trading View, another trader is bullish on Polkadot.
However, he firmly believes that the performance of Bitcoin holds sways to the DOT/USDT price action.
Based on this interpretation, it appears as if the trader believes that DOT and BTC are directly coupled despite fundamentals pulling in opposite directions.
Bitcoin is widely adopted and propped by institutions, while Polkadot activated the Parachain Slot auction.
This event is expected to drive demand for DOT in the medium term through to 2022.
As such, DOT prices, despite the cool off, are solid and comparatively firmer than Bitcoin.
From the daily chart, losses below $40 would likely cause more sellers to flow back. This might subsequently force back prices lower.
DOT Retraces But Remains Bullish, $70 a Critical Resistance Level
On YouTube, a trader thinks Polkadot prices would retrace offering entries for optimistic buyers.
From the 4HR and daily charts analysis, he expects DOT bulls to take charge, forcing prices above $55.
After that, DOT/USDT may fly to $70 and later $100. These are the 1 and 2.618 Fibonacci extension levels of the DOT 2020 to 2021 trade range.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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