Is Polkadot Ready to Rebound to New Highs?

Key Takeaways

  • Polkadot is down greater than 16% because the $55.20 all-time excessive of Nov. 4.
  • Now, costs have reached a essential assist degree which will function a rebound level.
  • As lengthy as DOT holds above $41,40, it may goal $89.35.

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Polkadot may very well be gearing up for a sustained rebound towards new all-time highs, relying on DOT’s potential to maintain above a vital assist barrier.

Polkadot Holds at Crucial Support

Polkadot appears to be like prepared for an additional rally regardless of the 25% correction it suffered shortly after hitting a file excessive at $55.20 on Nov. 4.

As pleasure surrounding final week’s parachain public sale launch intensifies, the quantity eight cryptocurrency by market cap has reached a vital assist degree represented by the decrease boundary of a parallel channel, which developed on the 12-hour chart since early July. 

Every time DOT has dropped to this technical sample’s decrease trendline, it has rebounded, surging to the sample’s center or higher edge. From this level, it tends to get rejected, which is in keeping with the traits of a parallel channel.

Similar worth motion means that the channel’s decrease trendline will proceed to maintain and function a rebound level for Polkadot. Therefore, a spike in shopping for stress across the present worth ranges may push DOT towards the channel’s center or higher trendline. These resistance factors sit at $60.60 and $89.35 respectively.

Source: TradingView

The Tom DeMark (TD) Sequential indicator provides credence to the optimistic outlook. It offered a purchase sign within the type of a crimson 9 candlestick on Polkadot’s 12-hour chart. The bullish formation anticipates a one to 4 candlestick upswing or the start of a brand new uptrend. 

As lengthy as DOT holds above $41.40, the bullish thesis ought to stay legitimate. However, if it fails to maintain, merchants could also be encourages to exit their lengthy positions in anticipation of a steep retracement. The enhance in promoting stress may then ignite a correction towards $34.80 and even $30.10. 

Disclosure: At the time of writing, the creator of this characteristic owned BTC and ETH.

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