- Polkadot price has attempted to break above $45.22 for the fourth time.
- DOT price will see more bulls coming in and target $50.76 to the upside
- As external tailwinds have not fully impacted DOT price, expect the positive effect to happen soon.
Polkadot (DOT) has made another attempt to break out of the bullish triangle. This is the fourth time already in just one month that price has tried to break to the upside, making it primed to likely succeed at the next attempt. Bulls will want to sit on their long positions before cashing in at $50.76.
DOT price sees bulls not taking any profit until $50.76
Polkadot price should have broken to the upside already by now, as the bullish triangle favored an extension of the uptrend. Despite the favorable tailwinds currently in cryptocurrencies, DOT has failed to capitalize. Instead, bulls are taking more and more profit around $45.22, the base of the triangle, and the buy-volume needed for any further uptrend is fading.
The risk is now that, should any of the favorable tailwinds start to fade, – if, for example, Bitcoin were unable to make new all-time highs – a downward move could start to accelerate as bears quickly take the upper hand. At first, the green ascending trend line would be broken to the downside with a first halt at $38. That level falls in line with the monthly R1 and has proven its resistance in the past few days.
DOT/USD daily chart
DOT price has not yet enjoyed to the full, the positive tailwinds and spillover effects from Bitcoin, suggesting there may still be more room to go, and Polkadot price could be ready to break above $45.22. Expect bulls to quickly face some resistance around the monthly R2 at $47.44. Once through that, however, it should be plain sailing towards $50.76.
In case those tailwinds start to fade, expect a break below the green ascending trend line towards $37.03. From there bears will want to target $27.23, which will act as pivot to decide if either the uptrend still has a possibility for recovery, or if a new downtrend will start.
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.