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Cheeky Crypto’s Polkadot Update: Key Takeaways and Trading Strategy

POLKADOT: IS $5 THE MACRO RESISTANCE FOR DOT?
POLKADOT: IS $5 THE MACRO RESISTANCE FOR DOT?

Recent Price Action: Polkadot has seen a significant push to the upside in recent weeks, but a recent retracement suggests more potential moves to the downside.

Elliott Wave Theory: Elliott Wave Theory suggests that we are in the midst of a five-wave move to the downside, with a correction expected.

Technical Analysis: The 50 EMA and 50 SMA have acted as resistance, and further downside is anticipated, possibly testing the 200 EMA on the 1-hour chart.

Short-term Projection: The target for the fifth wave is around $442 to $437 before expecting another move to the upside.

Daily Chart: The daily chart indicates rejection from the 200 EMA, targeting a move down to $263.

Fair Value Gap: A fair value gap from August 2020 suggests a possible price range between $370 and $390.

Smart Money Concepts: Smart money concepts suggest a high-high, low-low pattern with the price heading downward.

Long-term Outlook: The weekly chart still appears bearish, trading below the 50 EMA and 50 SMA, but a discount area for accumulation is noted between $465 and $21.

Caution: The stochastic RSI and volatility indicators hint at potential further downside.

Trading Strategy:

Given the bearish outlook, it is recommended to trade Polkadot with caution. A short trade could be entered with a stop loss above the recent swing high of $485 and a target of $442 to $437. Alternatively, traders could wait for a confirmation of a trend reversal before entering a long position.

Here are some additional tips for trading Polkadot safely:

Disclaimer: This is not financial advice. Please do your own research before making any trading decisions.

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