Polkadot bulls pour in and rally DOT higher – FXStreet

Jonathan Morgan Jonathan Morgan
Independent Analyst

Polkadot price could experience an unprecedented spike over the next week and extend into late January 2022. The setup on the $2.00/3-box reversal Point and Figure chart indicates a more than 300% move higher from the present value area.
Polkadot price has a strong bullish reversal Point and Figure chart pattern developing. That pattern is known as a Spike Pattern. A Spike Pattern is any columns of Xs or Os with fifteen or more boxes.
Polkadot completed the Spike Pattern when it hit its most recent swing low near the $24 value area. The entry off of a Spike Pattern is always the three-box reversal. This gives bulls an outstanding opportunity to enter at the bottom of a swing.
The hypothetical long setup off the Spike Pattern is a buy stop order at the 3-box reversal (currently $32), a stop loss of 4-boxes (currently at $24), and a profit target at $82. The profit target is derived from the Vertal Profit Target Method in Point and Figure Analysis.
The long trade idea provides a 6.25:1 reward for the risk trade setup. In addition, a two to three-box trailing stop would help protect any implied profits post entry.

DOT/USDT $2.00/3-box Reversal Point and Figure Chart
There is no current invalidation point for the entry because as Polkadot price moves lower, so does the entry.
Traders should watch the daily Ichimoku chart near the entry level at $32. There is considerable resistance at $31 to $32, and it is very likely buyers may have a tough time moving above that price range on the first test.
 
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Bitcoin price gives into the bearish vice grip as the bulls have abandonded ship near the $19,000 support zone. BTC price was rejected from the 8-day exponential moving average . A double scenario is now underway, and key levels have been identified.
XRP price is in the process of fortifying support around $0.3180 in the wake of a sharp decline from resistance at $0.3367. Although the cross-border money remittance token trades slightly above $0.3200.
Although many cryptocurrencies have lost significantly this year, Cardano will always be amongst the topmost assets as its troubles still have not ended.
Polkadot price has lost support from the 8- and 21-day simple moving averages. DOT price shows an uptick in bearish momentum on the volume profile indicator.
Bitcoin price shows an ongoing consolidation as it hovers at the same level for the past six days with no signs of directional bias. A breakout from this tightening range could result in a bearish move that eyes a sweep of the sell-stop liquidity below recent lows.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

source