- Polkadot retained a bearish structure on the daily and 4-hour price charts.
- Despite the lack of buying pressure, a 20% price move higher could commence in the next few days.
Polkadot (DOT) is currently exhibiting a long-term bearish trend but might experience a 20% price bounce in the upcoming days.
This does not necessarily suggest that the short-term outlook is bullish; rather, it underscores the consolidation phase that Polkadot has maintained since early February.
The altcoin has been consolidating just above the $4 level for the past month, which is notably above the lows from November that led to a rally up to $11.65. Traders can capitalize on this consolidation.
The Polkadot Price Targets for This Week
Technical indicators reflect bearishness and neutrality for DOT. The Awesome Oscillator remains below 0, indicating downward momentum, while the CMF shows no significant capital flow in or out of the market.
The absence of overwhelming sell pressure explains the consolidation seen between $4.25 and $5.2. Recently, a bounce in DOT from $4.2-$4.5 to $5.2 has taken between three to seven days.
The 4-hour chart suggests another bounce from the $4.2 region is forming. Although the H4 chart portrays a bearish market structure, this does not eliminate the possibility of a price bounce for Polkadot.
Again, the CMF is in neutral territory on this timeframe, while the Awesome Oscillator maintains bearish momentum. The $4.6 level could serve as resistance, but if bulls surpass this hurdle, a retest of $5.2 is likely.
Although the structure is bearish, liquidation levels significantly influence price movements. The decline from $5 to $4 on Monday increased liquidation levels around $5.2.
With downside liquidity tested, a price move higher to the next magnetic zone appears probable.
Thus, traders can anticipate a roughly 20% price increase over the forthcoming week. This would rely on Bitcoin (BTC) sustaining its short-term upward trajectory towards $92k; if not, Polkadot may struggle.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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