Chart Analysis: DOT/USDT (Polkadot)
General View:
Polkadot’s price chart is showing the potential to break out of the long-term downtrend. The formations and support-resistance levels seen on the chart are indicating a momentum that could lead to an upward move.
Target and Prices
1. Short Term Goal:
• $6.80 - $7.20: First resistance zone.
• $9.00: Key medium-term target area.
2. Medium-long Term Target:
• $14.50: The major target that the price can reach after the breakout.
Support and Resistance Levels
1. Support Levels:
• $5.20 - $5.30: Current support area.
• $4.50 - $4.80: Strong major support zone.
2. Resistance Levels:
• $6.80 to $7.20: First significant resistance zone.
• $9.00: Critical resistance level.
• $14.50: Long-term target resistance.
Indicators
1. Volume:
• Increasing volume may support an uptrend.
2. Fibonacci Retracement Levels:
• The 0.618% level may act as an area that strengthens the possibility of an upward breakout.
3. Moving Averages (MA):
• If the price moves above the 50 and 200-day moving averages, it may confirm the uptrend.
Formations and Formation Reversals
1. Descending Wedge Formation:
• There is a descending wedge formation on the chart, indicating that the downtrend may end and a breakout may occur.
• If the breakout occurs, the upward movement may accelerate.
2. Double Bottom Formation:
• The price may form a double bottom formation at support levels, triggering a potential upward move.
Trend Direction
1. Short Term Trend:
• Upward. However, resistance areas should be followed carefully.
2. Medium and Long Term Trend:
• If the downtrend is broken, the upward movement may continue in the medium and long term.
Strategy and Recommendations
1. Purchase Strategy:
• Purchases may be considered at the current price range between $5.20 - $5.50.
• Closes above $6.80 may be a good signal to open a new position.
2. Stop-Loss Levels:
• Closing below $4.50 should be considered as a stop-loss level.
3. Profit Taking:
• The first target is $7.20, then gradual profit taking can be done at $9.00 levels.
• In the long term, $14.50 levels can be reached.
4. Risk Management:
• You should proceed with low-volume purchases and gradual entries.
• It should be monitored whether the price increases with the volume.
Comment
The DOT/USDT chart appears to be preparing for a breakout with bullish potential. The breakout, especially supported by an increase in volume, may accelerate the price's movement towards resistance levels. However, risk management should be provided by taking profits in resistance areas. In the long term, the uptrend seems likely to continue.
