Home Polkadot Price Prediction: DOT might see minor pullback before continuing 64% bull rally
Crypto News

Polkadot Price Prediction: DOT might see minor pullback before continuing 64% bull rally

  • Polkadot price has surged nearly 10% after breaking out of a bullish pennant pattern.
  • The MRI indicator’s cycle top signal could momentarily  deter the upswing.
  • A bearish scenario might evolve if DOT drops below $37.5.

The Polkadot price has been on a tear for more than ten days and could take a slight pause before resuming its uptrend.

Polkadot price faces momentary pause

The Polkadot price slid into consolidation after rallying 190% between January 22 and April 4. While the initial spike can be considered as a flag pole, the one that followed it can be viewed as a pennant.  

DOT converged between two trend lines setting up lower highs and higher lows in the consolidation phase, creating a pennant. The technical formation is  a continuation pattern and projects a 63% upswing, determined by adding the flagpole’s height to the breakout point at $38.

This target places DOT at $62.44, a new all-time high.

As of April 2, the Polkadot price sliced through the pennant’s upper trend line, signaling the start of a new uptrend.

Since March 25, the DeFi token has surged nearly 57%, triggering the Momentum Reversal Indicator’s cycle top signal in the form of a red one candlestick on the daily chart. This setup forecasts a one-to-four candlestick correction.

Hence, DOT could see a minor correction unfold toward the immediate demand barrier at $42.39 before resuming its uptrend toward the intended target at $62.44.

DOT/USD 1-day chart

DOT/USD 1-day chart

While things seem bullish for the Polkadot price, investors need to pay close attention to the retracement. If this pullback extends beyond $37.5, it will put the bullish outlook on hold and perhaps trigger a bearish one.

In such a scenario, panicking investors might sell their holdings pushing DOT back into the pennant formation to retest the subsequent demand barrier at $33.7, which coincides with the 78.6% Fibonacci retracement level.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.