Polkadot prepared to explode as DOT targets $82 and new all-time highs – FXStreet

Jonathan Morgan Jonathan Morgan
Independent Analyst

Polkadot price continues to consolidate between the $26 and $31 price range. A breakout, however, is finally developing. The upside potential for DOT is substantial.
Polkadot price action continues to respond, bullishly, to a Point and Figure chart pattern known as a Spike Pattern. A Spike Pattern is any column of Xs or Os with fifteen or more boxes. The entry is always on the 3-box reversal. The most recent reversal occurred on December 20 at $32, just above the present value area at $28.
The hypothetical long entry previously discussed is still valid and presents an opportunity to add to an existing position or open a new one. The entry is a buy stop order at $32, a stop loss at $24, and a profit target at $82. The projected profit target is derived from the Vertical Profit Target Method in Point and Figure Analysis.
The trade setup represents a 6.25:1 reward for the risk, with an implied gain of over 178% from the entry. Due to the range of the profit target from the entry, splitting this trade into three or four smaller trades could be appropriate. Additionally, a trailing stop(s) of two to three boxes would protect any post-entry profit.

DOT/USDT $2.00/3-box Reversal Point and Figure Chart
Traders should expect some resistance near the $40 value area where the weekly Tenkan-Sen and daily Senkou Span B exist within the Ichimoku Kinko Hyo system.
The hypothetical long setup is invalidated if Polkadot price drops below $20.
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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.
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