Polkadot had been in a bearish trend lately until it tapped the major support on the daily and weekly timeframe at the price of 6.75. This price is important and we will look at the reaction of this support level on H4 time frame. If we analyze carefully, we see that the market has formed higher highs and higher lows on H4. This short term bullish momentum could either be the correction or be a long term continuation of the bullish sentiment. Right now, we will only be taking the bullish position for a short term as there is still a probability of the market continuing down, given the market sentiment of the whole cryptocurrency industry.

There is a descending trendline in the formation, which has been touching the two major pivotal points to create the trendline. This trendline is still above the current price action and we will have to wait for the breaout buy to confirm the bullish trend.

The golden retracement area of 75-78.6% is in confluence with the support level. This support level will act as a catalyst to push the market up, either long term or short term.

Both the EMA's are in a bearish direction with a bearish death cross. The markup on the prices from the support level might break the EMA 50 and continue moving towards the EMA 200. But this idea, is still fart fetched and we will need to see and analyze how the market reacts at the resistance level after breaking the EMA 50.

RSI is at 47 and CCI is at -34. Both the oscillators are nearing the neautralized levels and might break towards the upside. Once entered in the bullish territory, there is an open window towards the over bought area. We will take the bullish position till the over bought area.

Polkadot at the support

Jun 17 2022

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