Polkadot is currently trading at $15.37, a key swing low that might be breached.
A drop into the demand zone, which ranges from $14.06 to $14.49, may boost DOT up to $18.42 by 25%.
The bullish thesis will be invalidated if the bears break through the $13.65 support level.
Between June 20 and 22, the Polkadot price saw a huge fall, resulting in a new range bottom. Many altcoins have already reversed the correction, but DOT has not.
As a result, investors should anticipate a dramatic move, particularly if it bounces from a major demand zone.
Despite the fact that Bitcoin popularity has exploded, some US politicians are still attempting to regulate digital currencies. In a hearing on June 30, Brad Sherman (D-CA) was one of the politicians who asked for a shutdown of digital assets.
The salesperson explained how one millionaire would cause “nine others [to] not retire in dignity but instead become Medicaid eligible.”
“I hope we shut it down,” the elected leader continued.
Sherman went on to say that cryptocurrencies are used to “evade KYC” and are backed by “anarchists who embrace tax evasion.”
Many politicians, even today, lack a thorough knowledge of Bitcoin, blockchain, or Ethereum, and advocate for a ban or other harsh measures.
Institutions, on the other hand, are already scrambling to capitalize on the excitement and provide customers with a channel through which they may invest in digital assets.
Over the last week, Polkadot pricing has made four failed efforts to break through the 50% Fibonacci retracement barrier around $17. The most recent jab was met with a vehement rejection, resulting in a 7% drop in stock price.
This correction may continue until DOT finds stable support in the $14.06 to $14.49 demand zone. Polkadot price may even fall below the stated barrier and reverse after rebounding from the $13.65 support level in some situations.
The rise from $13.65 will very certainly prompt DOT to try again to cross the 50% Fibonacci retracement mark near $17. If the bullish momentum is strong enough, Polkadot pricing might easily cut through it.
In this situation, the altcoin might aim for a retest of the $18.42 resistance level. Although improbable, DOT might retest the range high at $21 if bid orders continue to pile up.
4-hour DOT/USDT chart
If Polkadot price breaks through the $13.65 support level, it will signify the presence of sellers, who may pull the cryptocurrency farther lower to the range bottom of $12.98.
The bullish thesis will be invalidated if this support level is broken, resulting in a 17 percent sell-off to the next demand hurdle at $10.75./n
