Polkadot (DOT) Fractal Hints At Impending Parabolic Bullish Rally
- DOT price has dropped 74% since hitting its ATH and consolidates at the moment.
- The alt’s fractal suggests an explosive upswing soon.
- A 24Hr candle close under $15.85 will form a lower low and annul the bullish narrative.
Polkadot price searches for bottom following a colossal devaluation within the previous four months. Surprisingly, the price function appears to have triggered a fractal.
Polkadot to Repeat Historical Move
Polkadot had its price movements printing a triple bottom formation late in 2020. This technical setup usually comprises a swing-low pattern, a deviation under the area, plus a 3rd retest. A bullish trend-reversal often follows this setup.
Though DOT saw some price consolidation following the triple bottom shape, it gained traction after a slight late 2020 December consolidation. The reversal formation lasted 43 days, leading to a 1000% total uptrend over the four months that followed.
Surprisingly, DOT price has formed a triple bottom formation similar to 2020 one and projects similar outcomes. Presuming Polkadot bulls trigger such an upside move, market players may execute long positions at current prices and anticipate a massive run-up in the coming months.
Though the fractal highlights a massive bullish case, DOT price should follow a similar road to confirm it. Nevertheless, the traditional markets uncertainty and interest rates hike might see the bullish structure fading.
A daily candle close under $15.85 will lead to a lower low, canceling Polkadot’s bullish theory. That would see DOT on downside moves, exploring the support floor at $13.16, following a 17% drop.
DOT/USD 4Hr Timeframe
Polkadot’s four-chart shows bulls made a massive comeback after encountering selling momentum around $16.5. The upside stance saw the alt climbing towards $18.2, where it faces some hurdles at the moment.
The Relative Strength Index sits in the bullish region and shows divergence signals, showing bulls may be losing strength. Also, the MACD trends higher, swaying in the positive area, suggesting a persistent uptrend. Bulls breaking the $18.2 resistance might open the road to $19. Let’s wait for what the upcoming market situations will bring.
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