The general longer-term outlook for Polkadot (DOT) is quite positive. However, there will be a near-term pullback before the altcoin finds another leg up. DOT has also surged in recent days, making the possibility of the pullback more predictable. Here are some highlights:
Polkadot (DOT) has struggled to push through its weekly supply zone of between $22 and $28.
At press time, the altcoin was trading for $21.58, virtually unchanged over the last 24 hours.
We expect DOT to pull back to around $17 before finding enough support to rally once again.
Data Source: Tradingview
Polkadot (DOT) – Price action and prediction
Polkadot (DOT) has climbed steadily in recent days. In fact, in February alone, the altcoin has reported gains of around 30% in total. But despite this, DOT has struggled to clear its weekly supply zone of between $22 and $28.
With this weakness, the bullish momentum we saw at the start of the month could slow. Although in the longer term the general outlook for DOT is positive, we expect a pullback towards $17 before DOT finds enough demand for another upward momentum.
However, if the coin falls further below $17, then we may see more losses before any rally comes again. At the time of writing this post, DOT was virtually unchanged over the last 24 hours, trading within its supply zone at $21.58.
Should you buy Polkadot (DOT)?
Well, there are two ways to profit from DOT. First, you can wait until the price retreats to $17 and buy at a discount for the long term. However, short-term traders can enter short positions around $22 and close at $17.
Either way, there are some decent opportunities for short- and long-term plays. But despite this, Polkadot (DOT) is a major crypto asset that will deliver immense long-term value anyway.
The post Polkadot (DOT) could pull back to $17 despite a bullish outlook in the longer term appeared first on Coin Journal.
