The Polkadot price has recently dropped significantly and has been trading below a previously established range for some time. The recent effort leading to the bottom reversal pattern is anticipated to result in a swift rally.
The DOT price reached a high of $24.00 before beginning to decline progressively. & later fell dramatically to the $6.85 support level. However, it bounced back, and then touched $11.86, resulting in a 72% price increase. Soon after, the bears gained control and drove the prices below the mid-point of 0.5, dropping them to $6.85. Prices briefly stayed at this level before falling to the $5.95 support level below the 6.85 level, which turned it into a resistance level under selling pressure.
Also Read: Polkadot(DOT) Price Gearing Up, May Leave Behind Top Giants Very Soon
The bears aggressively pushed the price below $7.78 as the bulls entered the market and drove it higher toward the mid-point of 0.5 at $9.35. Prices fluctuated between $6.85 and $7.78 for about a month before falling below $6.85 and hitting the $5.95 support level. The Polkadot was observed straying below the range twice and established a double bottom at $5.95, leading to a bullish scenario that predicted an increase of 82% to $11.86.
The first bullish indication, and most likely outcome, will occur when the Polkadot flips over the range bottom at $6.85. The price might retest the middle of the range, which is $9.35 and represents a 45% increase from $6.43.
Given that the Bitcoin price has no directional bias and is now undergoing a range tightening, investors are encouraged to keep an eye out for a potential sweep of the $5.95 level in order to accumulate the sell-stop liquidity before retesting $9.35.
A shift in the price of Bitcoin would sabotage the ideal bullish situation on Polkadot. Investors should thus pay close attention to the $5.95 level because a daily candlestick below it would result in a lower low, refute the hypothesis of a double bottom, and invalidate the bullish scenario, potentially causing the Polkadot price to drop to $5.46.
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