Polkadot price structure unchanged as DOT awaits breakout hit $40

Polkadot price action is mostly unchanged; the same reversal column still exists from November 3, 2021.
Bulls have been awaiting an entry for months, but the wait continues.
Point and Figure charting filters out the noise and prevents a lot of the anxiety associated with Japanese candlestick charts.

Polkadot price action has been hammered lower along with the rest of the cryptocurrency and broader risk-on markets. As a result, bears could push DOT to the $14 value area, a price zone not seen since August 2021.

Polkadot price action continues to display a bullish reversal pattern

Polkadot price continues to have one of the longest-lasting Spike Patters on its Point and Figure chart of the entire cryptocurrency market. The beginning of the current O-column was first developed on November 3, 2021. Since then, DOT has yet to have a reversal column of Xs develop. Although no time factor exists on a Point and Figure chart, the length of time without a reversal is notable and considerable.

A Spike Pattern is any column with fifteen or more Xs or Os. It represents extremes and overdone movements. The entry off of a Spike Pattern is the three-box reversal. Compared to other patterns in Point and Figure analysis, the Spike Pattern requires active management and is a more aggressive entry.

The theoretical long entry opportunity identified last week, moved one box lower. The buy stop order is now at $24, a stop loss at $16, and a profit target at $100. The profit target is derived from the Vertical Profit Target Method in Point and Figure analysis and should not be viewed as a target likely to hit anytime soon.

Given the resistance levels that have been discussed in prior analysis and on the existing Ichimoku charts, the $35 to $40 value area is likely to stop Polkadot’s initial rally from the entry.

DOT/USDT $2.00/3-box Reversal Point and Figure Chart

Additionally, because it is a Spike Pattern, the low of the current O-column is not known. Therefore, if Polkadot price moves lower, the entry and four-box stop loss move in tandem.

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