Polkadot(DOT) Price Analysis: The Wait Ends, Pennant Pattern Formation Complete!

Major Indicators favor the Bulls of Polkadot Price Rally
  • Polkadot price has formed a pennant pattern that has a pole length of $23, which means a possible upside of $23 or 61%
  • Polkadot price due on breaching the previous top, the least resistance 
Source: TradingView

Polkadot price has made a pennant pattern that has the potential of zooming the coin’s price by 60%, i.e., $23. The price currently receives resistance from the previous top of $39-440. The volume analysis displays a confirmed breakout as the volumes touched the 15-period average; a further surge will bring in a stronger rally. The market cap and 24-hour volumes are $36,463,514,228 and $2,217,038,290 respectively.

Major Indicators favor the Bulls of Polkadot Price Rally 

Source: TradingView

Left Image: The price action shows a clear breakout from the pennant pattern and a rise above $37.3, i.e., 78.6% retracement. Crucial Fibonacci levels are at $29.5, $32.75, and $7.3, which render support, while resistance could be at $43(100% Retracement). 

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Right Image: the price remains above the 50-EMA and 200-EMA, which buttress prices at $30-$31 and $13.6, respectively. 

The Bollinger bands have again expanded with the breakout, signaling for bulls to make new positions. The indicator supports at $36(median) and $33.11(lower band), whereas resistance is at $39.17(upper band), which is hampering the breakout. 

RSI gained momentum with the breakout, which confirms this breakout. The RSI took support along 50 levels and escalated to 63 levels. The indicator’s resistance lies at 68-70 zones, followed by 80 levels. 

The MACD(8,21,5) has flashed a buy signal for the participants as the indicator gives a bullish crossover at 0 levels. However, the indicator is lagging some momentum, so one may wait for the rise in momentum and the breach of 440 levels to have a confirmed entry. 

Conclusion: 

Polkadot breached out of the pennant pattern and is favored by the Bollinger Bands, RSI, and MACD. The price also successfully surpassed the 78.6% retracement levels. However, one should wait for the final confirmation of the volumes picking up momentum. 

Support: $37, $36, $32-$33 and $30.

Resistance: $40 and $43. 

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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