Polkadot gains 75% in one week — But can DOT price reach $20 next?

Bitcoin (BTC) has already taken significant strides this year, but altcoins are catching up. Once the price of Bitcoin begins to stabilize, the market environment for altcoins will get better so they can begin their run.

One of the strongest performers in 2021 is Polkadot as this cryptocurrency has hit new highs day by day. Polkadot’s price rose 85% in 2021 and 75% in the last seven days, beating XRP’s market cap.

The DOT price stipulates $ 20 or more after this rally

DOT / USDT 1-day chart. Source: TradingView

The daily chart of Polkadot shows a rounded floor construction in the last quarter of 2020. Since then, a beautiful support / resistance flip has taken place at the $ 4.55 level causing more upside movement.

This continuation on the upside started with a massive rally to USD 10, after which the demand (gray box) for support and new levels could be defined using the Fibonacci extension.

One of these regions was $ 14.25-14.75 and the second was $ 16-17, as the graph shows.

DOT / USDT 1-day chart. Source: TradingView

The main question right now is whether DOT has finished its current run. If so, areas of interest for support / resistance flips will be found at the Fibonacci levels 0.35-0.382 and 0.618-0.65.

These Fibonacci numbers are often used to predict where such corrections will potentially reverse course. In Polkadot’s case, these are in close line with previous levels of support or resistance, namely the USD 13 and USD 10.50 areas. This is where traders should be on the lookout for potential buy-the-dip opportunities.

Once again, Polkadot will most likely correct only if Bitcoin drops significantly. Otherwise, polkadot and many other altcoins are currently in a good position to see more upside potential.

However, if a correction is made and Polkadot hits a bottom, new levels of interest can be defined in the graphs for the next impulse move. If so, Polkadot could continue rising towards $ 23-24 and possibly even $ 32-35 later in the year.

DOT / BTC is approaching the critical resistance zone

DOT / BTC 1-day chart. Source: TradingView

The daily chart of Polkadot in the BTC pair shows a massive surge in recent days. However, this surge is approaching a significant zone of resistance.

It’s common sense and should be taken for granted, but entering into a trade right is not recommended if price is moving into the resistance zone.

The Sats range of 0.00045000-0.00047000 is a critical area for the breakthrough as it would trigger another strong upward momentum move. If that area breaks and switches to support, polkadot pricing is likely to continue.

However, the price will most likely not break up here. A healthy correction is possible in this scenario by keeping traders watching the 0.00035000 Sats region but also the 0.00031500-0.00032250 zone.

The $ 15 support level is vital

DOT / USD 2 hour chart. Source: TradingView

The 2 hour chart is showing a strong uptrend, but some critical levels must be in place for this rally to continue.

In that perspective, the previous high at USD 15 must maintain support. If that range holds, Polkadot will have another rally on the table to $ 20 or more.

It is on the table not to mistake the $ 15 area for support and a significant correction. The next areas of support are $ 12 and $ 10.75-11.25, which is a correction of 30-40%.

However, Polkadot shows that with one of the biggest climbs in 2021, it has plenty of potential for the year ahead.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.

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