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  • Polkadot price has impressively recovered from $10.30 and brushed shoulders with $29.
  • A V-shaped pattern boosting Polkadot hits its elastic limit threatening gains to $40.
  • Technical indicators and crypto signals favour DOT’s bullish outlook towards $29.

Polkadot has gained more approximately 145% of its value from July 20 low at $10.42 to August  17 high around $27.50. The recovery has been consistent over the past one month. DOT overcame numerous barriers, including the 50-period Simple Moving Average (SMA), 100 SMA, 200 SMA, $18.70 and $21.86 resistance levels. The uptrend recently touched $29.40 before the coin drifted back to $26.46. At the time of writing, the Polkadot price is dancing at $27.36 as the traders continue to take profits.

Polkadot’ Price Journey To $40 Becomes Vulnerable

Following the sharp drop rise from the June 15 high at $25.99 to the July low at $10.30, DOT fell into extremely oversold conditions. This warranted a recovery as investors picked themselves up, dusted, and focused on gains above $25.

Polkadot price created a V-shaped chart pattern in its uptrend, bestowing control back to the bulls. A V-shaped pattern is highly bullish and forms after an immense breakdown. As bulls return to the market, a sharp trend tends to come into the picture. A high trading volume ensures that the asset sustains the direction upwards.

Note that the measured target of Polkadot’s V-shaped recovery pattern is $40 as seen on the four-hour chart.

However, the V-shaped pattern does not go on forever and stops when it is no longer sustainable. For instance, DOT/USD price appears to have exhausted its impact above $29, implying that the rest of the journey to $40 is under threat.

DOT/USD Four-Hour Chart

Polkadot price Four-Hour Chart
Polkadot price Four-Hour Chart by Tradingview

Note to sustain the uptrend, DOT must remain within the confines of the ascending parallel channel to make sure that the uptrend remains. On the flip side, there is a higher chance of closing the day below the channel. In other words, a break under $26.46 support embraced by the 50 SMA would trigger sell orders amid intensifying losses towards the 100 SMA at $24. Several support areas will be in line to prevent losses from stretching further, including the 200 SMA at $20, and the major support zones between $24 and $20.

Can Polkadot Price Sustain Buyer’s Appetite to $40?

DOT  has been accorded vital support areas by some technical elements. First, Polkadot is trading above the 50 SMA at the $26.46 support wall, and the 100 and 200 SMAs at $24 and $20 respectively which turned from resistance into support following the rally that started July 21.

Second, the Moving Average Convergence Divergence (MACD) indicator is positioned in the positive region above the zero line which favours the bullish bias.

Third, DOT is still trading within the confines of the rising channel. As long as Polkadot price does not below the rising channel, the odds of breaking out to $40 are heightened.

Given these three solid reasons, Polkadot buyers might want to step into the rally.

How to Buy TRX

If you want to trade DOT, you can do so on the following crypto exchanges:

  • eToro
    eToro is one an FCA regulated platform with over 20 million user globally. eToro charges low trading fees and commissions.
  • Binance
    Binance is the largest exchange platform in the world that supports a wide range of cryptocurrencies and trading pairs. It also offers user-friendly features.

Looking to buy or trade Polkadot now? Invest at eToro!

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