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Polka Dot Technical Analysis: Navigating Resistance Levels and Market Conditions

BULLISH: Did Polkadot DOT BREAKOUT?
BULLISH: Did Polkadot DOT BREAKOUT?

Nick, the host of Cheeky Crypto, delves into the technical analysis of Polka Dot (DOT), providing insights across various time frames and highlighting key resistance levels to watch.

1-Hour Time Frame

On the 1-hour time frame, DOT/USDT on Binance exhibits positive signs, trading above the 200 EMA, 50 EMA, and 50 SMA, indicating an ongoing bullish trend. However, there’s a conflict between Elliott Wave Theory, which suggests a short-term corrective move, and smart money concepts, which point to an upward trend.

Nick emphasizes the significance of the 200 EMA as a trend filter, noting that staying above it maintains the bullish momentum. Additionally, the stochastic RSI suggests a lack of selling interest, further supporting the potential for an upside move.

Target Range on 1-Hour Chart

Nick outlines the target range, suggesting a potential push towards the 1.236 FIB scale. If DOT successfully breaches the 1.236 level, it could signal the start of a five-wave corrective pattern upwards.

Daily Time Frame

Moving to the daily time frame, DOT remains above the 200 EMA, a positive indication. However, Nick expresses caution, as DOT has previously breached the 200 EMA but remained overbought on the stochastic RSI.

To gain confidence in a bullish breakout, Nick looks for momentum to shift downwards and a breach of the $576 swing high. Conversely, if DOT fails to break above $556, a return to the $350-$433 range is possible.

Weekly Time Frame

On the weekly time frame, Nick highlights the historical resistance at the 50 SMA. DOT is currently overbought, showing divergence between a higher stochastic RSI and a lower price.

Nick suggests a potential 20-30% price reduction and a possible return to a new bear market low if $556 isn’t breached. He emphasizes the need to navigate heavy resistances on the path to potential growth.

Conclusion

Nick concludes the video by reiterating the importance of considering both potential growth opportunities and resistance levels when analyzing DOT’s price action. He encourages viewers to like, subscribe, and join the Discord community for further discussions and insights.

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