DOT is at the decision point to increase 25% or drop to $16.12
Polkadot price has been in a downtrend since its initial rally to a local high on February 8th. By February 19, DOT had broken below one of two key support levels to gather liquidity, indicating a possible upside.
Crucial moment for DOT
DOT is down 24% since Feb 8 and slipped below the $19.22 support, paving the way for sell stop liquidity below $17.97. This flushing of liquidity is often followed by a rise in prices.
Therefore, investors can expect DOT to initiate an uptrend to retest the recent hurdles that flipped at $17.97 and $21.2. Clearing these levels would allow DOT price to reach $22.65 which would bring the total gain to 25%.
In a favorable case, DOT can scale up and revisit the 4-hour supply zone that stretches from $23.93 to $25.59. The move would bring the overall gain to 32%.
A possible alternative upside scenario is for DOT price to drop lower and take another set of sell stops below $17.14.
If the four hour candle closes below $17.15, it will create a lower low and invalidate the bullish thesis. In this situation, panicked holders can take the DOT price lower and towards $16.12. This is where the marginal buyers can enter the market and continue the uptrend.
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