Jonathan Morgan
Independent Analyst
- Polkadot price action continues to lag its peers.
- The Ichimoku Kinko Hyo system provides an excellent early and aggressive entry opportunity.
- DOT may return to being a leader and outperformer in the crypto space.
Polkadot price maintains a strong support zone in the $20 to $21 value area. However, DOT bulls are finding difficulty moving above that zone.
Polkadot price has an explosive buy opportunity that could see DOT hit $30 and beyond
Polkadot price action is prepped for some nice gains ahead on its daily Ichimoku chart. Despite its strong recovery, it lags behind its peers, but that underperformance could end soon.
A buy stop or buy market order above the daily Kijun-Sen at $22.50 would be the hypothetical entry level for this long opportunity. The stop loss is at $20, and the profit target is at the 38.2% Fibonaccement at $31. However, the caveat with this trade setup is that the entry should only be on the close of the daily candlestick – so between $22.50 and $23.50 would be an appropriate entry zone.
The trade setup represents a 3.4:1 reward/risk with an implied profit target of 40% from the entry. A $2 trailing stop after Polkadot price hits $25 would help protect any profit made post entry.
DOT/USD Daily Ichimoku Kinko Hyo Chart
Downside risks remain but should be reasonably limited. The Tenkan-Sen at $20.50 is the critical support zone that Polkadot price must hold. A daily close below that level could trigger some massive selling pressure and resume the downtrend. In that scenario, Polkadot would likely return to test the 2022 lows, with a good probability of breaching those lows.
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