- Polkadot hodlers are underwater
- A bullish scenario remains valid if the lows maintain
- A transfer above $7 ought to result in extra features
It has been a troublesome interval for long-term holders of Polkadot. The DOT/USD trade charge has moved South relentlessly after peaking at $56 in late 2021.
From $56 to $5, it was a straight decline. It took just one yr for Polkadot to frustrate bulls.
And even now, as cryptocurrencies have rallied in 2023, one must be scared the each day chart. After all, the bounce from the lows appears so small when deciphering the larger image that it’s troublesome to discover a bullish argument.
Polkadot ought to overcome $7 resistance space for bulls to be in management
Zooming in, one might even see the 2023 rally that introduced again optimism in the cryptocurrency market. Sure sufficient, Polkadot already gave again greater than half of its YTD features.
But the invalidation degree for a bullish scenario nonetheless holds. Effectively, it implies that the latest value motion is likely to be nothing however a correction a part of a bigger-degree bullish pattern.
The Elliott Waves concept states that an impulsive transfer (i.e., the one which started at the begin of the yr) is adopted by a corrective construction, an a-b-c.
This a-b-c that corrects a bullish pattern ought to have two waves shifting in the wrong way (i.e., waves a and c), and one which strikes in the essential pattern’s path.
It implies that one might simply say that the transfer from the 2022 lows is an impulsive construction, and the decline from the 2023 highs is the a-b-c. In this case, the implications are bullish for Polkadot and bearish for the US greenback.
However, solely a transfer above the pivotal $7 degree would cement the bullish Elliott Waves scenario. Until then, bulls may want for the value motion to carry above the invalidation space proven on the chart above.
