Polkadot has struggled to successfully price rise past the high probability reversal zone for over a month now. The recent attempt to shatter it failed, leading to a local top on October 12. Since then, the DOT price has been in a downtrend and is likely to continue heading lower.

Polkadot price needs to blow off steam

DOT price set up three swing highs between September 7 and October 10. However, the most recent one failed to retest the 70.5% Fibonacci retracement level at a price of $38.30, leading to an 11% pullback to where DOT currently stands.

While this downswing was likely, investors need to watch for an extension of this price correction, causing a retest of the 50% Fibonacci retracement level at a price of $30.14. Such a move will allow DOT price to produce an equal bottom and give the uptrend another go. 



If successful, DOT price could put the 70.5% Fibonacci retracement level at $38.30 in its crosshairs and even reach the 79% Fibonacci retracement level at a price of $41.68. However, a decisive close above the $41.68 level will allow Polkadot price to tag the range high at the price of $50.04, constituting a 65% ascent.

A 10% retracement to the 50% Fibonacci retracement level at a price of $30.14 might seem unlikely. DOT has a chance to reverse its trend quickly, especially if BTC price fails its display of power. In that case, altcoins, including DOT, have a chance to prove themselves. 

Polkadot's price will invalidate the bullish thesis if it fails to hold above the $29.14 support level. This move might result in a retracement to the $25.21 or $22.23 levels footholds.

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