DOT/USD is in a triangular consolidation
The bias stays bearish
Conservative merchants may need to watch for the market to maneuver first
There’s nothing optimistic within the DOT/USD chart for bulls. The worth motion stays constrained by a triangular sample that shaped within the final twelve months.
Positive sufficient, the triangle could break in both path. However the bias is bearish whereas Polkadot’s worth motion holds contained in the sample.
Polkadot’s worth collapsed after the triple failure on the $50 space. The greenback’s power was one motive, however absolutely another components contributed to the selloff.
Not even the renewed optimism within the cryptocurrency market that was seen in 2023 was sufficient. After a small bounce, Polkadot gave away all of its 2023 features because the market was (and nonetheless is) unable to interrupt the decrease highs sequence. On the identical time, it pushes for one more decrease low – a bearish improvement.
Polkadot chart by TradingView
The bullish case for Polkadot
The one strategy to assemble a bullish case for Polkadot is to attend for the market to maneuver first merely. For a “proof of life,” if you need.
Such proof that the market turned bullish will seem provided that the value strikes above $8. And, if it holds there.
It might imply that the earlier decrease excessive is damaged, and the bias turned bullish. Till such a transfer is seen on the every day chart, shopping for DOT/USD is dangerous.
The bearish case for Polkadot
It’s simpler to construct a bearish case due to the descending triangle talked about earlier. If the market makes a brand new decrease low, the triangle’s measured transfer factors to a drop towards the $1 space.