- Polkadot has witnessed its price gaining over 22% from 20 December low.
- DOT's near-term overhead resistance stands around the value area of $31.
Polkadot's (DOT) price might witness an unprecedented surge within the coming week and extend the bullishness into 2022 January. The formation on $2.0/three-box Point &Figure chart shows an over 300% higher move from DOT's current price area.
DOT Poised for a Massive Upsurge to $82
Polkadot price shows a massive bullish reverse Point & Figure chart formation emerging. That pattern is a 'Spike Pattern.' It is any Os or Xs column with more than fifteen boxes.
Polkadot formed the Spike Pattern after its latest swing low near the value area of $24. The 3-box reversal is Spike Pattern's entry off. That presents bulls a remarkable opportunity to join at swing's bottom level.
The Spike Pattern's theoretical long formation is a profit target of $82, 4-box stop loss (currently around $24), and 3-box reversal stop order (currently near $32. The Point & Figure Analysis's Profit Target Method gives the profit target.
The trade idea offers a 6.25:1 risk trade setup reward. Moreover, a 2 – 3-box trailing stop would protect implied profits after entry. The entry has no invalidation point since the entry moves lows whenever the DOT price drop.
Market players need to consider the 24hr Ichimoku chart around the entry-level of $32. There's a significant resistance between $31 and $31, and buyers might encounter challenges moving past this price range with their first test.
Polkadot presents bullish moves and seems to continue with its upward journey. The digital token stays 20% up from the low recorded on 20 December. Moreover, the increasing bulls in the DOT marketplace support the upward case. Nevertheless, overall crypto market trends might impact DOT's movements.
For now, the crypto spectrum flashes upswings as top cryptocurrencies trade in the green. The leading coin Bitcoin rallied past the critical value area at $50,000. Such a move bolstered bullishness across the market. BTC sustaining its upward stance will support upswings in altcoins, including Polkadot.
Stay tuned for the latest developments in the crypto world.