Polkadot Gains 75% In One Week – But Can DOT Price Reach $ 20 Then?
Bitcoin (BTC) has already made significant progress this year, but altcoins are catching up. Once the price of Bitcoin begins to stabilize, the market environment becomes better for altcoins to start their race.
Polkadot is one of the top performers in 2021, as this cryptocurrency has reaching new, unprecedented heights day after day. Polkadot’s price has risen 85% in 2021 and 75% in the past seven days, outperforming XRP by market cap.
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DOT price is looking at $ 20 or more after this rally
Polkadot’s daily chart shows a rounded bottom construction throughout the last quarter of 2020. Since then, a nice support reversal / resistance took place at the $ 4.55 level, leading to more bullish.
This upward pursuit started with a massive rally to $ 10, after which demand (gray box) turned is held for support and new levels could be set using the Fibonacci extension.
One of these regions was between $ 14.25 and $ 14.75 and the second, between $ 16 and $ 17, as the chart shows.
The main question right now is whether the DOT has completed its current execution. If this is the case, the areas of interest for support / resistance flips are found at the Fibonacci levels 0.35-0.382 and 0.618-0.65.
These Fibonacci levels are often used for predict where these corrections will potentially reverse their course. In Polkadot’s case, these align strongly with previous support or resistance levels, namely the $ 13 and $ 10.50 areas. This is where traders should watch out for potential downside buying opportunities.
Again, Polkadot will likely only correct when Bitcoin begins to drop significantly. Otherwise, Polkadot and many other altcoins are currently in a good position for further bullishness.
However, if a correction occurs and Polkadot hits bottom, new levels of interest may be set on the charts. for the next impulse movement. In this case, Polkadot could continue its rise towards $ 23-24 and maybe even $ 32-35 at a later stage of the year.
DOT / BTC is approaching the critical resistance zone
Polkadot’s daily chart in the BTC pair shows a strong increase in recent days. However, this push is approaching an area of significant resistance.
This is common sense and should go without saying, but it is not advisable to enter a trade right as the price moves into the resistance zone.
The 0.00045000-0.00047000 sats zone is a critical zone to break through as this would trigger another strong upward pulse. If this area breaks and turns around for support, the pursuit is probably towards price discovery for Polkadot.
However, price will likely fail to rise up here. In this scenario, a healthy correction is possible thanks to traders who should watch the 0.00035000 sats region, but also the 0.00031500-0.00032250 area.
The $ 15 support level is vital
The 2 hour chart shows a strong uptrend, but some critical levels need to hold for this rally to continue.
From this perspective, the previous high of $ 15 should support support. If this zone holds, a new rally at $ 20 or more is on the tables to occur for Polkadot.
Fail to hold the $ 15 area for support and a big correction is on the table. The next areas of support are $ 12 and $ 10.75-11.25, a correction of 30-40%.
However, Polkadot shows he has a lot of potential for the coming year. with one of the largest increases to date in 2021.
The views and opinions expressed herein are solely those of author and do not reflect necessarily the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.