Polkadot must break through crucial resistance for DOT price to hit $61

Polkadot price continues to test prior ascending wedge trend lines as resistance.
Higher highs and higher lows point to sustained growth and valuations.
An extremely bullish Point and Figure pattern could initiate a breakout.

Polkadot price continues to churn higher in the $40 price range and seeks to push beyond the current consolidation. But first, Polkadot needs to break through the resistance levels that continue to prevent a significant, monstrous bullish break.

Polkadot price continues to assault prior trendlines; a breakout could occur soon

Polkadot price action has been a source of frustration for short-sellers. There have been multiple, solid opportunities for Polkadot to experience a major collapse, but all have failed. Buyers are firm and continue to buy any small dips in the $40 value area. Short sellers have been most active when Polkadot approaches the trendlines of a previous rising wedge. On the Point and Figure chart below, there have four attempts to break above the trendlines and four rejections. Polkadot is approaching its fifth and possibly final attempt.

The hypothetical trade idea shows a probable entry at $47. The entry is based on the break of a double-top. Usually, a double-top is not enough reason to take an entry, but one more pattern makes the $47 entry appropriate. The current X column entry would confirm a Bear Trap pattern because the last O-column created an O below the double bottom but failed to move lower. Because of the Bear Trap pattern, additional momentum from trapped shorts will be crucial in Polkadot breaking out above the trendlines.

DOT/USDT $0.50/3-box Reversal Point and Figure Chart

However, caution should always be practiced. The consistent rejection is a sign of strength and adds to the power of the resistance at the trendlines. Traders will want to watch for any selling pressure that would push Polkdaot price back to $41 as this could trigger a robust corrective move to the mid-$30 range.

Share: Cryptos feed

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.

Join Telegram