Polkadot Elliott Wave technical analysis [Video]

DOT/USD – Elliott Wave technical analysis

Function: Trend continuation.
Mode: Motive.
Structure: Impulse.
Position: Wave 3.
Direction next higher degrees: -
Wave cancel invalid level: -

DOT/USD trading strategy

Polkadot (DOT) continues to indicate a bullish reversal, having finished wave 2 as a Zigzag correction at the 50%–61.8% Fibonacci retracement level. The price action has now decisively crossed the bullish level, signaling a strong beginning of wave 3, which historically represents the most powerful part of the trend per Elliott Wave principles. The immediate upside target is $6.17. Traders should structure their buy strategies according to the ongoing wave pattern to ride the larger market movement.

• Entry signal: Price breach above the bullish level at $4.40 indicates the start of wave 3.
• Risk management: Price moving below the red support line (wave cancel invalid level) invalidates the current wave setup.

Trading strategies:

Strategy

• For swing traders (short-term): Enter long positions after confirmation of a breakout above $4.40, targeting the next resistance at $6.17.

Risk management

• Close positions if price moves below the key support/invalidation line.

DOT/USD – Elliott Wave technical analysis

Function: Trend continuation.
Mode: Motive.
Structure: Impulse.
Position: Wave 3.
Direction next higher degrees: -
Wave cancel invalid level: -

DOT/USD trading strategy

DOT’s bullish reversal aligns with Elliott Wave logic, following a completed wave 2 Zigzag pattern at a critical Fibonacci support area (50%–61.8%). The price has since broken the bullish level, affirming entry into wave 3. With a target near $6.17, short-term and medium-term traders can plan buy entries aligned with the wave direction for trend optimization.

• Entry signal: Price moves past the bullish level of $4.40 to confirm wave 3.
• Risk management: Breach below the red invalidation line negates the wave forecast.

Trading strategies:

Strategy

• For swing traders (short-term): Trade with the momentum in wave 3 and watch for a pullback into wave 4 for further entries.

Risk management

• Review the wave structure and exit positions if price falls below the invalidation level.

DOT/USD – Elliott Wave technical analysis [Video]