CONTEXTUAL ANALYSIS
On this second day of decline, we see a loss of bullish momentum and strong bearish pressure, which provides new buying opportunities (as long as the dominance of $BTC and the dominance of $USDC ). It is unlikely that $DOT will reach levels below 7 USD. However, it is necessary to operate with utmost care, even if the long-term trend is bullish and we are experiencing a bearish correction, this setback can be extremely volatile and may be designed to burn stop losses.
RESISTANCES
Polkadot has not performed excellently, but it has a lot of potential due to its intrinsic value, along with a loyal community that understands the project. This could be a winning mix that helps the next supports become magnets for the price and achieve important targets:
- 11,306
- 12.30
- 14,236
- 18,000 (Psychological level)
- 19.55
SUPPORTS
Like many market corrections, Dot presents an unparalleled opportunity to consolidate the important supports of these last bullish weeks. We identify how the price may be in a zone of indecision/lateral, a price range where buying and selling are much more constant, thus forming a much stronger support with projections to escalate the price. These supports are:
- 8,386
- 7,598
- 7,363
- 6,518 (If this last support is broken, we will find a broad liquidity zone up to approximately 4.7 USD)
ENTRY POINTS
This opportunity that the market offers us amid the rise of cryptocurrencies, new ATH of BTC, and much speculation around market whales' participation, can serve as a boost so that when hope is lost in Dot, it can be reborn with great strength. If this is the case, the possible points would be:
- 7,599
- 7,874
STOP LOSS
- 6,455
CONCLUSION
We are facing a very strong setback and we must monitor trend indicators that allow us to analyze the market projection correlatively. Although fundamental analysis, news, and speculation give us a very bullish general outlook, it is important to operate with caution.
#TradingSignals #Cryptoanalysis #MarketForecast #MarketCorrections #polkadot
