DOT / USD has retraced slightly from its medium-term highs and is breaking near the all-important 25.0000 index at the time of writing.
After reaching a high of almost 29,500 on August 21, the DOT / USD has seen a pullback in recent days. As of this writing, the cryptocurrency it is trading at the 25.0000 juncture in the typical fast conditions that are a Polkadot staple. The cryptocurrency market in general has seen many of the major digital assets stumble slightly out of their short-term medium-term highs, so the DOT / USD is not alone.
However, before a trader suspect that I am here to proclaim that a bullish rally in cryptocurrencies is over and prices in the general market are going to face strong headwinds again in the next few days, is it not. Yes, the DOT / USD could face the challenge of the short positions of speculators who have bought the cryptocurrency during this bullish surge, which has been shown since July 20, as they seek to collect the Profits. However, from a technical point of view, the markets continue to show that there is greater potential to the upside and it may well be worth the bet.
Monday’s highs, when DOT / USD traded near the 29.5000 level, hit values not seen since May 21. The downward pullback that has occurred in the last two days is also hovering around an important psychological level.
The price of 25.0000 can be a false signal; DOT / USD moves quickly and major support level traders who understand swirls of volatility within the Polkadot they may actually decide that the juncture of 23.0000 is critical. The 24.0000 level certainly comes before the 23.0000 juncture, but if the lower juncture crumbles then there could be reason to suspect that the bullish momentum shown in DOT / USD is about to be honestly challenged and perhaps retired.
Conversely, if the current price indices are stable and the 24.7500 to 24.5000 marks hold firm as support, this could be an indication that more buying is to take place. The point that speculators may correctly grasp if the market reverts higher again is that the current selloff is a normal part of the cryptocurrency landscape.
There is no doubt that when things go wrong and bearish momentum builds and support levels are looted that this can prove costly for traders chasing the wrong direction. As always, proper risk management is recommended, but buying DOT / USD in the event of slight pullbacks to the downside while looking for upside action may be the best short-term speculative bet.
Polkadot Short-Term Forecast:
- Current Resistance: 25,7000
- Current Support: 24.1800
- High Target: 28.2000
- Low Target: 22,9100