Market Analysis

POLKADOT PRICE ANALYSIS & PREDICTION (December 21) – DOT Resurges With A 17% Gain Today After A Week Retracement, Where Next?

The price of DOT broke out of a key resistance level today and tapped a 15-month high after several weeks of increase. It saw a 10% weekly gain as more potential surge is likely towards a key breakdown level.

As anticipated in the past weeks, the inverse head and shoulder pattern spotted on the daily chart eventually played out well and sparked a 30% surge in five days. It dropped and found support above $6.3 this week.

The price bounced back and surged through the important $7.9 resistance level to test $8.3 today. It pulled back slightly from there due to a slight rejection. A rebound from the current trading level could fuel more increase towards the August 2022 breakdown level and beyond.

However, it is important to pay attention to DOT’s price movement as it surged through several resistance levels in the past months. Currently, it is changing hands above $8 following the latest gains.

Looking at the market structure from a technical standpoint, the asset is out of the wood from a short-term perspective. However, it may face some tough resistance levels on the way up.

A continuous breakup should bring more positive actions in the near term. If the price drops, the recent flipped levels are areas to consider for a retest. Nevertheless, DOT is technically bullish on the daily.

DOT’s Key Levels To Watch

Source: Tradingview

The closest support level to watch out for drops is $7.9, followed by $7.4 and $7 on the lower timeframe. Below these levels lie the $6.4 and $6 supports.

Pushing through the current high of $8.37, the immediate resistance to watch for an increase is $8.6 and $9 – the initial breakdown in August 2022. The $9.7 level is the next resistance to watch for an increase.

Key Resistance Levels: $8.6, $9, $9.7

Key Support Levels: $7.9, $7.4, $7

  • Spot Price: $8.2
  • Trend: Bullish
  • Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.