Polkadot (DOT/USD) Elliott Wave technical analysis [Video]

DOT/USD Elliott Wave technical analysis

• Function: Follow Trend.

• Mode: Motive.

• Structure: Impulse.

• Position: Wave 2.

• Next higher degrees direction: N/A.

• Invalidation level: N/A.

Trading strategy – Daily chart

DOT is undergoing a wave II correction. Once completed, wave III may begin, which often exhibits strong momentum in Elliott Wave theory. Wave I ended at $5.407 and followed a clear five-wave pattern. Currently, wave II unfolds as an ABC correction. Target levels for wave C are:

• Fib 0.618 ≈ $3.94.
• Fib 0.786 ≈ $3.62.

Suggested strategies

• For short-term traders (swing trade):
  • Monitor price action near $3.62–$3.94.
  • Look for bullish reversal patterns (e.g., Pin Bar, Engulfing).
• Risk management:
  • Set Stop Loss below $3.40 (invalid level for wave count).

DOT/USD Elliott Wave technical analysis

• Function: Follow Trend.

• Mode: Motive.

• Structure: Impulse.

• Position: Wave 2.

• Next higher degrees direction: N/A.

• Invalidation level: N/A.

Trading strategy – Four-hour chart

Polkadot (DOT) is in wave II correction phase, setting the stage for a wave III rally. The first wave (Wave I) ended at $5.407 with a five-wave internal structure. The market now corrects through wave II in an ABC formation. Price targets for wave C are:

• Fib 0.618 ≈ $3.94.
• Fib 0.786 ≈ $3.62.

Suggested strategies

• For short-term traders (swing trade):
  • Wait for a test of the $3.62–$3.94 zone.
  • Identify bullish reversal signals.
• Risk management:
• • Place Stop Loss below $3.40.

Polkadot (DOT/USD) Elliott Wave technical analysis [Video]