Polkadot price looks unstoppable as it marches towards $100

Polkadot price action has consolidated significantly over the past three sessions. The bodies of the Monday, Tuesday, and Wednesday candlesticks show DOT stuck between the $21.20 and $22.50 value areas.  

Polkadot price consolidation is likely a precursor to a major bullish breakout

Polkadot price continues to have one of the longest-lasting Spike Patters on its Point and Figure chart of the entire cryptocurrency market. The beginning of current O-column was first developed on November 3, 2021. Since November 3, 2021, DOT has yet to have a reversal column of Xs develop. Although no time factor exists on a Point and Figure chart, the length of time without a reversal is notable and considerable.

A Spike Pattern is any column with fifteen or more Xs or Os. It represents extremes and overdone movements. The entry off of a Spike Pattern is the three-box reversal. Compared to other patterns in Point and Figure analysis, the Spike Pattern requires active management and is a more aggressive entry.

The theoretical long entry opportunity for Polkadot price is a buy stop order at $24, a stop loss at $16, and a profit target at $100. The profit target is derived from the Vertical Profit Target Method in Point and Figure analysis and should not be viewed as a target likely to get hit anytime soon.

DOT/USD $2.00/3-box Reversal Point and Figure Chart

Additionally, because it is a Spike Pattern, the low of the current O-column is not known. Therefore, if Polkadot price moves lower, the entry and four-box stop loss move in tandem with price.

Downside risks remain a concern and are likely limited to the 2022 lows near the $17 value area.