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- Uptrend started from last year’s Christmas to go south as DOT price undergo consolidation instead of the downtrend and restart the upside journey
- The price has recently broken the second wave consolidation, which started in mid-February. The formed range had given quite opportunities before the breakout
The second wave consolidation started in mid-Feb, and the recent breakout has given more than a month for Polkadot price to coil up, which can give a strong up move if the retest works. The market capitalization is $40,983,872,891 (increase of 3.8%) and the 24 hour volume is $2,970,711,645( increase of 18.20%) both of which support the idea of up move.
Polkadot price is ready to retest the breakout of such long consolidation. However, the double bottom formed after breakout could prove harmful to the bulls.
The support trendline below the top of the consolidation range can provide support to the retest, but if it fails next support would be 200 EMA (black). The following support level is the consolidation range base at $27.52.
Up move could be expected until $50-$52 or more if the breakouts become a success.
50 EMA is above 200 EMA, and the scenario is similar to that of a crossover in the 4-hour timeframe forecasting strong up move.
RSI at 57 is slowly approaching an overbought zone, but the divergence of RSI could be more dangerous.
Conclusion
Entry would be ideal at the retest of the breakout of consolidation. However, one must be cautious as polkadot price might jump without retest leaving one behind. If the retest fails, the next support would be at the 200 EMA or near the base of the consolidation range.
Support Level– 200 EMA, Zone near $27.52
