Polkadot (DOT) continues to show promising momentum, with analysts closely monitoring its Elliott Wave patterns for potential price movements. The DOT chart on the daily timeframe suggests that the cryptocurrency is poised for further upside. Below are key insights from a recent technical analysis update:
Current Market Behavior
Wave Formation: DOT has completed a three-wave move upward from its August low. Analysts are now anticipating the formation of a fourth and fifth wave before a significant top is reached.
Short-Term Targets: If the bullish trend persists, DOT could target prices between $12.40 and $16.57, with the potential to approach $26 in an extended rally.
Critical Support and Resistance Levels
Key Resistance: Around $12.38, which corresponds to the peak of the ongoing third wave. Breaking this level could open the path to higher Fibonacci levels like $16.50.
Key Support: The support zone is currently defined between $7.85 and $9.64. A break below $7.85 would signal a deeper pullback, indicating the start of a broader corrective phase.
Potential Scenarios
Bullish Continuation: Analysts are optimistic about short-term gains as long as DOT maintains its position above the critical support at $7.85.
Possible Pullback: The lack of a definitive signal for a deeper correction suggests that traders should remain vigilant. If prices dip below $5.71, it could indicate a shift to new lows.
Market Dynamics
Triangle Formation: In the micro timeframe, DOT appears to be consolidating within a triangle pattern. A breakout in either direction will provide clarity on the next move.
Wave Analysis Flexibility: The microstructure of the current wave remains fluid, requiring traders to adapt to evolving patterns.
Conclusion
Polkadot’s technical indicators reflect a predominantly bullish outlook, with room for both upside potential and cautious pullbacks. Traders should keep an eye on critical support levels and monitor for breakout signals in the near term.
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Disclaimer: This update is for informational purposes only and not financial advice.
