- Polkadot price up more than 22% from the December 20 low.
- Near-term resistance ahead near the $31 value area.
- Insanely bullish reversal pattern now present on the Point and Figure Chart
Polkadot price could experience an unprecedented spike over the next week and extend into late January 2022. The setup on the $2.00/3-box reversal Point and Figure chart indicates a more than 300% move higher from the present value area.
Polkadot price poised to move to $82
Polkadot price has a strong bullish reversal Point and Figure chart pattern developing. That pattern is known as a Spike Pattern. A Spike Pattern is any columns of Xs or Os with fifteen or more boxes.
Polkadot completed the Spike Pattern when it hit its most recent swing low near the $24 value area. The entry off of a Spike Pattern is always the three-box reversal. This gives bulls an outstanding opportunity to enter at the bottom of a swing.
The hypothetical long setup off the Spike Pattern is a buy stop order at the 3-box reversal (currently $32), a stop loss of 4-boxes (currently at $24), and a profit target at $82. The profit target is derived from the Vertal Profit Target Method in Point and Figure Analysis.
The long trade idea provides a 6.25:1 reward for the risk trade setup. In addition, a two to three-box trailing stop would help protect any implied profits post entry.
DOT/USDT $2.00/3-box Reversal Point and Figure Chart
There is no current invalidation point for the entry because as Polkadot price moves lower, so does the entry.
Traders should watch the daily Ichimoku chart near the entry level at $32. There is considerable resistance at $31 to $32, and it is very likely buyers may have a tough time moving above that price range on the first test.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.