Lets go Polkadot!
Vasl Capital
DOTUSD·
Feb 23 2022
Stop Loss -6.06%
Holding time 8hr
16.552
Entry price
15.549
Stop loss price
After taking two consecutive losses on Polkadot, as the whole crypto market is bearish at the current time, we will be looking for a final push towards towards 22. The price for the bull run would be from 17.50.
Polkadot has started to form its uptrend, with H4 higher highs and higher lows. Right now, the price is at 17.80. 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 which has taken a rebound, which is also our potential target profit. The structure seems to be mixed currently on Dot. This support should be held for the push up. If not, we need to liquidate our positions the moment market breaks the support. The structure on higher time frames is still bullish and market needs to respect it until this support is broken.
Polkadot has formed a bullish continuation wedge pattern. The support trendline has been tested twice where as, the resistance trendline is still pending to be broken out for buys. Market retested the trendline twice and usually after twice rejections, there is a high chance for the market to breakout buy for the third time.
The golden retracement 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 sell and has been retested at the resistance level. Therefore, the bearish validation has been completed and market now needs to resort back to this level or retest the higher EMA 200.
Both the oscillators are in an over sold conditions and both have divergences formed. These divergences being formed on the support level will push the prices up.
CONCLUSION: BULLISH
Currently, the analysis on Polkadot look promising but given we have already taken two losses on polkadot in a row, we will be very asture in taking a loss once market breaks the support level.