- Polkadot price strength being compromised by the intersection of two resistance levels.
- Rebound may be disguising the next leg of a bearish pattern.
- Osprey Funds broadens market for alternative cryptocurrency funds.
Polkadot price rebound at a crossroads, leaving market operators bewildered and frustrated as other cryptocurrencies sprint towards new highs. In the short term, the pattern presents the potential for a 20% rally from the current price if resistance levels are overpowered.
Polkadot price future to be influenced by a new generation of crypto investors
The new Osprey Polkadot Trust caters to sophisticated investors searching for a unique opportunity to access one of the largest layer one smart contract chains. The fund will be available to high-net-worth individuals with an investment minimum of $25,000, and it will list on the OTCQX market as soon as possible.
DOT began 2021 with an impressive rally, but from mid-February, the cryptocurrency has primarily moved sideways, except for a minor new high in the middle of April. The new high was matched with a bearish momentum divergence, as the Relative Strength Index (RSI) on various timeframes failed to print a new high. The ensuing correction traveled to the 50% retracement of the advance that began on December 23, 2020, resulting in a 40% decline.
From a macro perspective, a potential head-and-shoulders top is lurking on the 12-hour chart. To complete the pattern and to provide symmetry, DOT needs to shrug off the resistance at the crossroads of the double top trigger at $37.71 and the 100 twelve-hour simple moving average (SMA) at $36.93 to reach a similar high as the left shoulder around $42.36. It would equate to a 20% gain from the current price.
To further add symmetry, the right shoulder could take weeks to complete, as was the case with the left shoulder, bolstering the credibility of the pattern that ranks very high in terms of success and returns if adequately formed
DOT/USD 12-hour chart
The bearish thesis is voided if DOT rallies beyond the April high at $48.54. A surge beyond the high will collide with the meridian trend line beginning at the end of December 2020 and through the March low. The trend line currently rests at $58.25.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.