Cryptocurrency Polkadot will try …

Cryptocurrency Polkadot will try …

Why Polkadot WILL 13x SOON (DOT Price Prediction)

Contents

Cryptocurrency Polkadot will try to absorb September highs
CONTENT

  • The DOT is likely to be trading within the rising wedge.

  • Support and resistance are located at $ 3.80 and $ 6.40, respectively.

  • Price likely completed wave B of A-B-C retracement.

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Polkadot (DOT) cryptocurrency bounced off important support level and headed for absorption of previous highs.

The inability of the bulls to break through the area of ​​the current resistance can provoke a sharp drop in the price to the level of $ 3.

Polkadot trading range

The Polkadot (DOT) token, which entered the top 5 cryptocurrencies by market capitalization in early September, marked a maximum of $ 6.86 on September 1. After that, the price began to decline and on September 5, it reached a low of $ 3.53. From here the pair began to strengthen again.

The price rebound has taken the form of a rising wedge, which is traditionally considered a bearish reversal pattern. However, the resistance line of this wedge has not yet undergone sufficient testing necessary to confirm this pattern..

The nearest areas of support and resistance are located at $ 3.80 and $ 6.40, respectively.

DOT chart. Source: TradingView

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On the short-term chart, another short-term range of $ 4.10 – $ 4.90 can be seen. At the time of writing the analysis, the price attacked the $ 4.90 area and turned it into support.

If the DOT rate does not return to this range, the most likely scenario will be continued growth.

DOT chart. Source: TradingView

Probable growth

Cryptocurrency trader @TheCryptoDog tweeted a DOT chart and speculated that the price would rise again to the previous high of $ 6.80.

Source: Twitter

Technical indicators are giving bullish signals. MACD is growing, entering the green zone. Stochastic RSI has formed a bullish crossover and is rising just like the RSI.

Accordingly, until the price makes a bearish breakdown of the “wedge” model or goes under the local support of $ 4.90, the DOT rate can rise in the direction of the $ 6.40- $ 6.80 range..

DOT chart. Source: TradingView

Cryptocurrency Polkadot will try ...

Wave analysis

Starting on August 18, the price has been forming a bullish five-wave impulse structure (black in the chart below). Its formation ended on September 1 with a maximum of $ 6.86.

Cryptocurrency Polkadot will try ...

After that, the market either completed the A-B-C retracement (red) around the 0.618 Fibonacci retracement level relative to the entire bearish move, or it is still within the A-B-C retracement wave B (black).

DOT chart. Source: TradingView

Analysis of the shorter-term charts favors the second scenario, in which the price has just completed wave B of the A-B-C correction. If this is true, then wave C can push the price back to the $ 3.40- $ 2.15 range..

The main argument in favor of this option is the fact that the rise from the September 5 low looks more corrective than impulsive. The ratio of subwaves A to C (red) is 1: 1, which suggests that price may have peaked.

A pure breakdown of the 0.618 Fibonacci retracement level relative to the entire bearish move at $ 5.59 will neutralize this scenario.

DOT chart. Source: TradingView

Thus, the further direction of the DOT rate movement seems unclear due to conflicting signals. Which provide technical indicators and wave analysis results. A bullish breakout of the $ 5.60 level and turning it into support will tip the scales in favor of the bulls. Meanwhile, a decline below $ 4.90 would indicate a higher likelihood of a bearish scenario.

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