Polkadot price looks to be showing a slightly bullish reaction as it nears a support floor. This uptick in buying pressure could be a lure as DOT could slide lower in search of liquidity. Therefore, investors need to be aware of a potential wick to the downside. Polkadot price has been on a downswing for roughly three weeks and shows signs of reversal as it hovers above $37.55. While the 30% correction seems done, there is a small chance DOT might dive lower to collect the liquidity resting below the $37.55 support level and fill the fair value gap at $35.47. This move will provide the buyers with a perfect opportunity to accumulate DOT at a discount. Regardless of where it drops to, investors can expect Polkadot price to kick-start its upswing toward $45.72 thereafter.

This upswing would constitute a 30% climb from $35.47 or 21% from $37.55. In some cases, DOT could extend to the $47.91 and $49.71 resistance barriers.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the short side of the market, the theoretical entry for Polkadot price is a sell stop order at $37, a stop loss at $40 and a profit target at $28. This trade has a tighter stop loss of only three boxes because the prior trend was an uptrend. The short entry is based on a breakout below a Bearish Catapult pattern.This trade is invalidated if the long idea is triggered.

Traders on both sides of the market will want to be careful during this trading week as it is the Thanksgiving holiday week in the US. Expect sideways markets and an increase in volatility. Historically, wild price swings can occur with little to no warning.

Polkadot Accumulation or Consolidation ?

Nov 25 2021