More On: polkadot
Predictions for Cryptocurrencies Prices: Ethereum Will Break Through to $4000, Polkadot Will Continue to Rise
Polkadot is unable to maintain its position above critical support, causing DOT to fall 10%.
- The polkadot price continues to fall; the next support level is 10% below the open.
- The DOT remains largely unchanged; the same reversal column exists as of November 3, 2021.
- Lower lows in 2022 are now a possible outcome.
Polkadot price has retraced roughly half of the rally seen on Monday. Furthermore, DOT has fallen below (and continues to fall below) the Kijun-Sen. The Tenkan-Sen as support is now being tested.
Polkadot price may fall another 10% before testing the Tenkan-Sen as support. Polkadot price is in danger of breaking a new uptrend that it has attempted to build this week.
Commodity price concerns, Russian aggression and the invasion of Ukraine, and inflation have all contributed to a flight from risky assets.
The biggest worry for DOT right now is its reaction after breaking below the Kijun-Sen. Although the Kijun-Sen is typically a strong support level once an instrument closes above it, Polkadot was unable to sustain a close above it for more than two days.
The Tenkan-Sen, at $16.84, is the weakest support level in the Ichimoku system. If DOT closes below the Tenkan-Sen, nothing will stop the Polkadot price from making new 2022 lows and falling to the $10.00 level.
However, nothing has changed for Polkadot in terms of trading or pure price action. Point and Figure traders are waiting for the first reversal column of Xs to appear, so how low DOT moves in the long run is insignificant.
Polkadot price has one of the longest-lasting Spike Patters on the entire cryptocurrency market's Point and Figure chart. On November 3, 2021, the current O-column was created for the first time. DOT has yet to see a reversal column of Xs form since November 3, 2021. Although there is no time factor on a Point and Figure chart, the length of time without a reversal is notable and significant.
Any column with fifteen or more Xs or Os is a Spike Pattern. It is symbolic of extremes and overdone movements. The three-box reversal is the entry off of a Spike Pattern. The Spike Pattern, when compared to other patterns in Point and Figure analysis, requires active management and is a more aggressive entry.
The theoretical long entry remains at $24, with a stop loss at $16 and a profit target of $100. The profit target is derived from the Vertical Profit Target Method in Point and Figure analysis and should not be regarded as a target that is likely to be met in the near future.
Because it is a Spike Pattern, the current O-low column's is unknown. As a result, if the Polkadot price falls, so will the entry and four-box stop loss.
Given the resistance levels discussed in previous analysis and on the existing Ichimoku charts, Polkadot's initial rally from the entry is likely to be halted.
Furthermore, because it is a Spike Pattern, the current O-low column's is unknown. As a result, if the Polkadot price falls, so will the entry and four-box stop loss.
Downside risks could easily extend below the 2022 low to the last high volume node in the 2021 Volume Profile, which is currently trading at $10.00.
Polkadot front and center with bulls ready to hit $25.00
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