Polkadot has started to form its uptrend, with H4 higher highs and higher lows. Right now, the price is at 20. We need to wait for the market to test the support at 17.50, where there is a high potential for the market to bounce back up. The resistance is at 22. This resistance is our potential target profit area.

Polkadot has formed a bullish continuation wedge pattern. The support trendline has been tested twice where as, the resistance trendline has been breached and validated by the price action of opening and closing above the trendline.  After the breakout buys, we wait for the retracement to take place in order to go long for a position.

The golden retracement area of 75-78.6% completely resides with the support level. This confluence with uplift the pressure on the price action.

Although, both the EMA's are in a bearish death cross, but EMA 50, just broke out for breakout buy. After validation it needs to retest the EMA 50 to fuel up to tap the EMA 200. EMA 200 is above the current price action and is in confluence with the resistance level.

The osclliators are showing us the opposite side of our plan. The bearish divergence is being formed on RSI, which needs to push it down towards our target support area. If this divergence pressures the price action enough to tap the support level, it will null the bearish effect at the support level.

If DOT closes below our market support area, we will close the position. 

Buying the Polkadot at 17.50

Feb 05 2022

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