Crypto Patel shared his analysis of Polkadot as it reaches a critical support level. According to Patel, DOT price is currently trading near a strong support zone between $3.80 and $3.60. If this level manages to hold, we could potentially see an upward movement in price.
However, Patel warns of a potential liquidity grab, where the price might temporarily dip below the support level to liquidate high-leverage positions before eventually bouncing back. This is a common market manipulation tactic that traders should be aware of.
What you'll learn 👉
Strategic Buying Approach
For those interested in accumulating DOT, Patel suggests a measured approach. He recommends considering small entries at current levels while also placing buy orders in the $2.50 to $2.00 range for potential long-term gains.
This strategy acknowledges both the current support and the possibility of a deeper dip before a meaningful reversal. By splitting entries, investors can potentially capture value at different price points.
Altseason Potential and Price Targets
Looking ahead to broader market cycles, Patel believes that if DOT follows the anticipated market uptrend during the next altcoin season, it could potentially reach impressive heights of $40 to $50.
The analysis identifies several important price thresholds that traders should keep an eye on. A price staying above $3.60 would likely signal a bullish move, while a drop below this level could indicate possible stop hunts before an eventual reversal.
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The current chart shows DOT consolidating around the $3.60-$3.80 support zone, with an immediate resistance level around $10.44. A more significant long-term resistance sits near $42.10, which marked a previous major peak.
The area below current support contains high liquidity, suggesting that market makers might target these levels to collect stop losses before initiating a larger move upward.
Bullish vs. Bearish Scenarios
In a bullish scenario, if the $3.60 support holds firm, DOT could begin climbing toward the $10.44 resistance. Breaking above this level would likely trigger a stronger bullish phase with much higher targets.
Conversely, a sustained breakdown below $3.60 might push prices toward the $2.50-$2.00 zone, which Patel identifies as an optimal long-term accumulation area.
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