✴️ Polkadot Analysis by Request (Name Your Altcoin)Here is the situation we are in: Many of you are asking for an analysis on Polkadot (DOTUSDT), and you know, this thing -technical analysis, is not an exact science. At the same time I can be clouded by my own bias which for many of the TOP Altcoins and Bitcoin is bearish.
So, I can read the chart for you, the signals and the potential scenarios that can develop from this point forward or, I can tell you what I think and what I see coming or, I can do both.
We have short-term, medium-term and long-term.
Short-term all the technicals are bullish but technicals and potential are two different things.
➖ From a bearish cycle, from bottom prices starts the new phase, a bullish wave.
➖ From a bullish wave or impulse, starts a correction or retrace.
A correction or retrace doesn't mean that the growth phase is over, it is more like a break but again, let's focus on what the chart says.
This wave final target is around $20-$23, which is the price level/range that worked as resistance back in March/April 2022.
We now have the bigger picture.
Knowing this we can appreciate the fact that any retrace or correction is just part of the bigger bullish wave.
Here we have the weekly timeframe since this move is already ongoing... If I showed you something like this, does it make sense?
This one looks more proportional:
Wave 3 can continue going and we get something like this:
And we go back to square one.
We cannot and do not try to predict how exactly the market will behave, price action and wave development can be impossible to predict. The points at which the rise stop can vary wildly from pair to pair... This is what we do, we predict the reversal, pick the bottom, buy and hold long-term.
➖ Once you hit bottom, the only place left to go is up.
➖ So once we have a great entry trading is easy, no risk involved.
Never mind that, let's go back and read the chart!
Here we have Polkadot (DOTUSDT) on the daily timeframe.
The chart is bullish as the RSI has a strong reading and prices are high up above EMA10.
Volume is high and continues to rise, it would be too early to say that this pair is set to print a retrace... Things can easily change.
➖ If prices break and close daily below $6.28 we can say that a correction is on its way. Any trading above this level and we continue aiming up.
➖ If Polkadot breaks the last high, $7.769, expect the $10/$11 resistance level to be tested next.
Now, just as there was a small retrace in November before additional growth (small retrace 1), there can be another one (small retrace 2):
These are some of the possibilities of what can happen next.
➖ Strongly bullish above $7
➖ Still bullish above $6.28
If it moves below warning... But we still get long-term growth.
See the "Related Ideas" below, the article title reads:
✴️ Polkadot's Downtrend Is Over... (Name Your Altcoin)
Thanks a lot for your continued support.
Namaste.
