Polkadot has started to form its uptrend, with H4 higher highs and higher lows. Right now, the price is at 18.30. We need to wait for the market to test the support at 17.30, where there is a high potential for the market to bounce back up. The resistance is at 20 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 61.8% completely resides with the minor support level. This confluence with uplift the pressure on the price action. The price of this confluence is at 18.30.

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, we will target the profit towards the retest of the EMA 50.

RSI is in a bearish region at the 47 level, whereas CCI is at the -36, which is also a bearish region. We can either have a bullish divergence formed at the support level which can form a bullish divergence in an over sold region, or we can have levels becoming neutralized once they start crossing those levels.

Currently, the analysis on Polkadot look promising but given we have already taken three losses on polkadot in a row, we will be very asture in taking a loss once market breaks the support level.

Flattened Polkadot

Apr 22 2022

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