Since the First of September, the price of Polkadot have been continuously in a downtrend. However today, based on technical analysis, the price started recovering, moving out of the descending triangle, breaking previous resistance and forming new support lines.
At this moment DOTUSDT is trading around 4.6$
What is expected for the next few days?
As long as the price action of DOT stays above the 200EMA, the trend will be considered upward, the 200 EMA will be creating a new support line around 4.28$, with extremely bullish possible scenario.
Taking a short position in this moment depends on breaking the support lines or failing on testing resistance. First resistance level will be 4.92$, and the second resistance will be 5.431$.
Prices will be affected by BTC dominance, BTC price action, and the possibility of a healthy retracement.
Perfect entry price for a long would be 4.29-4.3, setting stop loss close below the 200 EMA in this case 4.22
This project has huge potentials in the blockchain industry, and will be competing with previous coins due to its renovation in some concepts.
Trade wisely, don’t invest more than you could afford, do your own research, this is not a financial advice, it is technical analysis.
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Thanks for your attention,