Altcoins

Polkadot: A cup, a handle, and what’s next for DOT’s price action

Polkadot [DOT] entered a cooling section within the first week of April after delivering a wholesome bull run in March. Nevertheless, zooming out reveals that it has been buying and selling in a cup and deal with sample. This may assist predict DOT’s value motion over the following few weeks.

The cup and deal with sample manifests as a curvature within the value motion, equivalent to a value dip and subsequent restoration. The value experiences a retracement as soon as the curvature is full, ensuing within the “deal with” half.

A cup, a deal with, and what they imply precisely

As will be seen from DOT’s 1-day value chart, this sample kicked off on 8 February and ended on 3 April.

DOT was buying and selling at $17.62, on the time of press – A roughly 26% drop from its newest high. The value correction has thus far shaped a wholesome “deal with” within the cup and deal with sample. The RSI assumed a downward trajectory however averted the oversold zone on the 1-day chart. Moreover, the MFI appeared to level in the direction of important outflows pushing in the direction of the buildup zone.

DOT’s 4-hour chart, then again, pictured the worth bouncing from its descending assist after briefly dipping into oversold territory as per the RSI.

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The DMI flashed sturdy bearish momentum. Nevertheless, a +DI crossing above the ADX and –DI within the subsequent few hours will verify change in favor of bullish momentum.

Some on-chain metrics may assist to find out whether or not momentum is absolutely altering in favor of the bulls. Santiment’s connected chart, as an example, revealed that there was a big uptick in proportion whale holdings within the final 24 hours.

It additionally highlighted larger volumes over the past two days and a market cap uptick. All these parts, collectively, are sure to bode effectively for the altcoin’s value motion.

Polkadot DOT 10.34.46 12 Apr 2022

Supply: Santiment

What subsequent, actually?

The cup and deal with sample, in its present type (upright), is taken into account a bullish signal. Quantity and market cap will increase implement the bullish sentiment.

Nevertheless, it doesn’t dispel any potential sell-offs alongside the way in which, particularly within the occasion of surprising bearish occasions.

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