Polkadot ($DOT) has exhibited strong bullish momentum in the last 24 hours, approaching a key resistance zone around $5.14. This movement comes after a solid bounce from the support level of $4.57, suggesting significant potential for an upside breakout if trading volume remains robust.
Entry Strategy:
Possible entry points are suggested between $5.02 and $5.12, looking for a slight correction or a consolidation period at these levels to confirm buyer interest.
Profit Targets:
Target 1: $5.30 (Immediate psychological resistance)
Target 2: $5.55 (Supply zone identified in February)
Target 3: $5.80 (Potential breakout extension and upper limit of the previous trading range)
Stop Loss Level:
To mitigate risk, it is recommended to set a stop loss at $4.89, slightly below recent support and the confluence of the Exponential Moving Averages (EMA).
Key Levels to Monitor:
Support: $4.89 / $4.57
Resistance: $5.30 / $5.55 / $5.80
Pivot Point: $5.13
Additional Considerations:
Special attention is recommended for trading volume. A 4-hour candle closing above $5.15 accompanied by a significant increase in volume could confirm the bullish breakout. Additionally, the stability of Bitcoin's price ($BTC) will be an important factor, as sideways or bullish behavior of BTC could catalyze a flow of capital into Layer 1 altcoins like Polkadot.
A strategy to consider is the use of a dynamic stop loss (trailing stop) once Target 2 is reached, which would allow for securing profits while maintaining exposure to additional upside potential.
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