Polkadot price is experiencing a pullback after failing to retest the 70.5% Fibonacci retracement level at $38.30.
A 10% pullback to retest the 50% Fibonacci retracement level at $30.14 is likely.
If DOT price produces a daily close below $29.14, it will invalidate the bullish thesis.
Polkadot price has struggled to successfully 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, DOT has been on a downtrend and is likely to continue heading lower.
Polkadot 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 $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 correction, causing a retest of the 50% Fibonacci retracement level at $30.14. Such a move will allow Polkadot price to produce an equal bottom and give the uptrend another go.
If successful, DOT could put the 70.5% Fibonacci retracement level at $38.30 in its crosshairs and even reach the 79% Fibonacci retracement level at $41.68. However, a decisive close above $41.68 will allow Polkadot price to tag the range high at $50.04, constituting a 65% ascent.
DOT/USDT 1-day chart
A 10% retracement to the 50% Fibonacci retracement level at $30.14 might seem unlikely. DOT has a chance to reverse its trend quickly, especially if BTC fails its display of power. In that case, altcoins, including DOT, have a chance to prove themselves.
Polkadot price will invalidate the bullish thesis if it fails to hold above the $29.14 support floor. This move might result in a retracement to the $25.21 or $22.23 footholds.