Polkadot price prediction: DOT/USD looking to retrace after a 110% move

TL;DR Breakdown

  •  DOT/USDT currently trades around $13.4. 
  •  Polkadot set a new yearly high at $15.
  •  Clear support around $10.5 to be tested 

After our previous Polkadot price prediction, the DOT/USD has continued moving higher and currently trades around $13.5 and has a market cap of $12.5 billion. DOT has moved by 13 percent during the past 24 hours with a volume of 6.2 billion.

The DOT/USD made an incredible move this week after support around $7 was tested. Polkadot gained more than 110% and set a new yearly high of $15.06 . Currently, a retracement is needed as the market has extended too far from the previous low.

Polkadot price prediction: DOT/USD looking to retrace after a 110% move 1

Cryptocurrency heat map by Coin360

Polkadot Price Prediction: DOT is ready for a pullback

After a brief retest earlier today, DOT has started to trade lower. DOT/USD opened at $14.46 earlier today and currently rejects further upside. 

The analyst can see a clear support level around the $10-11 area. Previous resistance around 10.5 will likely now act as support. Additionally, a Fibonacci retracement from the $7 to $15 move shows a confluence around this area. The 61.8 Fibonacci retracement is nearby – at $10.

The 100 period moving average, seen as a blue line on the chart, and the 50 period moving average, seen as a red line on the chart, are closing in around this area. Both will likely provide additional support for the price.

Therefore, the $10-11 area is the one you should watch over the upcoming days. It shows several confluences for support. A position opened from there would provide a good risk/reward ratio, with the expectation that the next upswing will follow. 

Polkadot price movement in the last 24 hours

The price of Polkadot has increased by 12.68 percent over the past 24 hours. The price currently trades close to the yearly high of $15.06. Today, no further upside was seen as the DOT/USD is exhausted.

The 24 hour low is at $12.03, while the 24 hour high is at $14.86. This indicates that the DOT/USD is in a very volatile environment. The volatility will continue over the weekend as there is a lot of room for a retracement.

Polkadot price prediction: DOT/USD looking to retrace after a 110% move 2

Polkadot price chart by TradingView

DOT/USD 4-hour chart – price ready to retrace towards $10.5?

On the DOT/USD 4-hour chart, we can see a very extended bullish move over the past days. Therefore, retracement is needed before any further trading can be considered. 

Polkadot Price Prediction: conclusion

As the DOT/USD has increased by 110% this week, and the price made a new yearly high at $15.06, a retracement is expected next week.

Strong support around $10-11 area is yet to be tested. It previously offered a strong resistance for the DOT/USD and now should act as a support. Additionally, the area between 50 and 61.8 percent Fibonacci retracement is aligned perfectly with the resistance.

Therefore, Polkadot is set for a major retracement in the upcoming week. A further upside might be possible. However, the critical support area around $10-11 would still be valid. Until this support area is tested, any trade would have a suboptimal risk/reward ratio.

Polkadot is still among the best performing cryptocurrencies and can be traded on every crypto exchange, such as Coinbase.

Additionally, read our news on Polkadot becoming the fifth largest blockchain.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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