Briefly –
- Polkadot seems to coil up under its ATH at $49.78.
- The consolidations show a climbing wedge pattern, confirming a minor correction before the alt enters recovery mode.
- Breaching the $25.50 level will annul the bullish scenario.
Polkadot has recorded consistent surges in the previous month. However, the rally may see DOT suffering in the near term due to the bearish pattern that followed. With that, market players should expect a slight correction, serving as an opportunity to buy, before DOT explodes to higher highs.
Polkadot Ready to Explore New Regions
Polkadot witnessed its price climbing by 74% from 29 September to 21 October. However, the alternative coin dipped in consolidation after the remarkable rally. Keep in mind that the rally highlighted earlier resulted in multiple higher lows and higher highs that converged. Using trend lines to connect these wing levels presents a climbing wedge formation.
This technical pattern exposes a 32% downtrend, revealed by adding the space from the initial swing high and low to the price breakout level. Though DOT trades within the formation, a significant daily close under $42.50 will confirm a breakout. In such cases, the climbing wedge predicts a surge to $28.89.
Also read:Though the theoretical aim remains somewhat steep, market players need to watch the support levels at $38.77 and $33.41. Magnified selling strength may force Polkadot towards the intended target. As DOT trades beneath the ATH of $49.78, the plummet will mean a substantial opportunity. Are you are a long-term investor interested in acquiring $DOT at discounted value? It might be the time you act. That means that the brief correction will later see magnified buying momentum, allowing DOT to rise above its ATH, heading to the 100% FIB retracement at $95. The altcoin can then extend its movements towards the psychological level at $100.
Though the optimism, breaching the support level at $25.50 will break the double-bottom set-up and form a lower low. Such price actions will invalidate the bullish narrative highlighted above. Meanwhile, a quick rescue to create a higher high might cancel the looming bearishness. Failing to do that will see Polkadot exploring lower prices.
You can comment in the section below.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.