- Polkadot price is developing a bullish reversal candlestick on the weekly chart, signaling a bottom is likely in.
- Likewise, the Point and Figure chart displays a bullish reversal setup and a buying opportunity.
- Downside risks remain but are likely limited.
Polkadot price is holding, so far, the $20 value area as its primary support zone. The recent downtrend and sell-off in the cryptocurrency market has positioned DOT in a strong support zone and one that will likely create the bottom it needs to pursue its next uptrend.
Polkadot price readies for another bull run, but only if it holds the $20 value area
Polkadot price is at a vital price range that will likely establish the resumption of a bull run or a dive towards capitulation. Bulls and bears both are nervous because the threshold for rally or collapse continues to decrease. While bears have recently taken control of the trend, there is now a long opportunity available.
A hypothetical long opportunity for Polkadot price now exists on the $2.00/3-box reversal Point and Figure chart. The long setup is a buy stop order at $28, a stop loss at $20, and a profit target at $82. The trade setup is a 6.75:1 reward/risk with an implied profit of 225% from the entry. A three-box trailing stop would help protect any profit made post entry. However, resistance will likely be found immediately at the $30 zone before a run towards $82 could continue.
DOT/USD $2.00/3-box Reversal Point and Figure Chart
The $30 value area is the primary resistance level that Polkadot price will need to break before any further upside momentum could occur. The weekly Tenkan-Sen, Kijun-Sen, and 38.2% Fibonacci retracement exist at the $30 price level. So if bulls push above $30, then it’s a wide-open space to push higher.
DOT/USD Weekly Ichimoku Kinko Hyo Chart
The bullish outlook for Polkadot price will be invalidated if there is a weekly close below the weekly Ichimoku Cloud at $16. If that occurs, a capitulation move into the single digits is very probable.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.