Monday’s crypto market wide sell-off has revisited Polkadot’s formidable 3.50 yearly support. Is this enough discounted price reset towards March 2024 highs already?

As a result, my July 8’s long trade call has exited in another loss after holding for 26 days and 22 hours:

https://www.finlogix.com/analysis/20240708/polkadot-intraday-analysis-and-trading-plan-for-july-8-2024

The US is set to have 1 remaining high impact economic report this coming Thursday.

The crypto markets in general including Polkadot have scored another trading day in green after Monday’s extended sell-off.

Re-assessing DOTUSD’s high timeframe candles:

Yearly Candle: Last check is a Red Long Upper Shadow now a Red Body with a Longer Head Wick

Monthly Candle: Previous close is a Red Body with a Longer Tail Wick current is a Red Hanging Man

Weekly Candle: Previous close is a Red Body with a Slightly Longer Tail Wick current is a Red Semi Dragonfly Doji

Daily Candle: Previous close is a Green Body with a Longer Head Wick current is a Green Spinning Top

In order to see how strong the mentioned 3.50 multi-year support is, please zoom out using the weekly time-frame.

Many crypto market participants were caught off-guard during Monday’s mass dump including myself.

Even I thought that the July 4-5 dump was the last dip to challenge DOTUSD’s 2024 highs but it proved me wrong after bears melted that external lows last week followed by more Monday bleeding!

Amid these recent huge market movements taking down the lower sell side liquidity levels, I’m still bull biased till a real price reversal kicks in.

I have given up most of my July Finlogix crypto trading plans’ unrealized profits including Polkadot.

Crypto markets are one of the most notorious in terms of sudden price fluctuations and it’s very, very important to have proper risk management.

Remember my advice to use trailing stops to avoid giving back the supposed gains to the market or at least go back to break-even.

A 5 loss streak won’t stop me from opening a new DOTUSD long position.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

All trade ideas I share are my own views and for my own trades only.

Polkadot Intraday Analysis and Trading Plan For August 7, 2024

Aug 07 2024

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