The Polkadot price appeared to be at the local top with the technicals suggesting a short-term trend reversal is possible. The retracement may be taken as a good opportunity for the bulls to enter the space as the DOT price appears to be primed to surge beyond the immediate resistance very soon. On the other hand, if the selling volume accelerates and aggregates, then a notable plunge below $18 may be imminent.
The asset maintained a notable uptrend since the beginning of the monthly trade and despite a couple of pullbacks, the asset maintained to rise high. However, the current plunge can also be considered as one of the similar minor corrections which may be flipped shortly. The buying pressure is slowly getting accumulated and once the sellers get a little exhausted, then the price may continue to spike as per the plot.
The Polkadot price since it flipped from the bottom, followed a notable ascending parallel channel. The asset hovered for a notable time along with the lower bands and quickly smashed through the middle ranges to hit the upper resistance.
And in the times when a breakout was much expected, the DOT price witnessed a significant plunge yet sustained above the middle bands. The price is currently consolidating heavily along with the middle bands and showcasing both the possibilities of a breakout and a breakdown.
However, a plunge is very much unlikely as the buying volume is slowly getting accumulated and hence a notable jump may be in-line after a minor consolidation. Yet if the Polkadot(DOT)price raises high and slices through the resistance then it may hit the demand area. Here the probability of the investors jumping in is extremely high which may assist the price to achieve the higher levels beyond $25 in the short-term.
Source: https://coinpedia.org/price-analysis/polkadot-dot-price-could-drop-to-this-level/