- Polkadot price has crashed 74% from its all-time high and is currently consolidating.
- A fractal for DOT hints that this coiling up will lead to an explosive move in the near future.
- A daily candlestick close below $15.85 will create a lower low and invalidate the bullish thesis.
Polkadot price seems to be looking for a bottom after undergoing a massive devaluation over the past four months. Interestingly, this price action seems to have led to a fractal.
Polkadot price history to repeat
Polkadot price set up a triple bottom setup in late 2020. This technical formation usually contains a swing low formation followed by a deviation below this level and a third retest, often followed by a reversal of trend favoring the bulls.
Although Polkadot price consolidated quite a bit after the triple bottom formation, it caught traction after a tiny consolidation in late December 2020. In total, the reversal setup lasted 43 days and resulted in a total of 1000% upswing over the next four months.
Interestingly, Polkadot price has produced a similar triple bottom setup of the same duration as the one formed in 2020 and hints at a similar outcome. Assuming DOT bulls manage to pull off such a run-up, investors can long DOT at the current level and expect a 100% upswing in the coming months.
DOT/USDT 1-day chart
While the fractal is extremely bullish, Polkadot price needs to confirm it by following a similar path. Due to the high degree of uncertainty in traditional markets and the effects of interest rate hikes, however, there is a good chance this setup might turn sour.
A daily candlestick close below $15.85 will create a lower low and invalidate the bullish thesis for the Polkadot price. Such a move will open the path for bears to explore the 13.16 support level after crashing 17%.
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